Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500 standard deviation has been about 38% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 4%. Calculate the utility levels of each portfolio for an investor with A = 2. Assume the utility function is U = E(r) 0.5 A2.

WBills Windex 0.0 1.0 U(A = 2) 0.1200 0.2 0.8 0.4 0.6 0.6 0.4 0.8 0.2 1.0 0.0