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 37% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%. = Calculate the utility level of a portfolio for an investor with A = 3, where the weight of the Risk Free asset = 0.4 and the weight of the Index 0.6. Assume the utility function is U - E(r) - 0.5 x Ao2. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places.) Next >