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Consider historical data showing that the average annual rate of return on the S&P 5 0 0 portfolio over the past 8 5 years has

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 24% per year. Assume these
values are representative of investors' expectations for future performance and that the current T-bill rate is 3%.
Calculate the utility levels of each portfolio for an investor with A=3. Assume the utility function is U=E(r)-0.5A2.(Negative
amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places.)
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