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Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averageo roughly 8%

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Consider historical data showing that the average annual rate of return on the S\&P 500 portfolio over the past 85 years has averageo roughly 8% more than the Treasury bill return and that the S\&P 500 standard deviation has been about 34% 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 levels of each portfolio for an investor with A=2. Assume the utility function is U=E(r)0.5A2. (Do not round intermediate calculations. Round your answers to 4 decimal places. Negative amounts shouid be indicated by a minus sign. ) Answer is complete but not entirely correct. Consider historical data showing that the average annual rate of return on the S\&P 500 portfolio over the past 85 years has averageo roughly 8% more than the Treasury bill return and that the S\&P 500 standard deviation has been about 34% 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 levels of each portfolio for an investor with A=2. Assume the utility function is U=E(r)0.5A2. (Do not round intermediate calculations. Round your answers to 4 decimal places. Negative amounts shouid be indicated by a minus sign. ) Answer is complete but not entirely correct

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