Q12. See attachment

Check my work 12 Refer the table below on the average excess return of the U.S. equity market and the standard deviation of that excess return. Suppose that the U.S. market is your risky portfolio. 0.62 Average Annual Returns U.S. Equity Market points 1-Month Excess Standard Sharpe Period U. S. equity T-Bills return Deviation Ratio 1927-2018 11. 77 3.38 8.34 20.36 0. 41 eBook 1927-1949 9.40 0. 92 8.49 26.83 0. 32 1950-1972 14.00 3. 14 10 .86 17 .46 0. 62 1973-1995 13.38 7.26 6.11 18.43 0.33 Print 1996-2018 10.10 2. 21 7.89 18.39 0. 43 References a. If your risk-aversion coefficient is A = 4.3 and you believe that the entire 1927-2018 period is representative of future expected performance, what fraction of your portfolio should be allocated to T-bills and what fraction to equity? Assume your utility function is u - E(r) - 0.5 x 402. (Do not round intermediate calculations. Round your answers to 2 decimal places.) T-bills 80.88 % Equity Mc 16eBook Print b. If your risk-aversion coefficient is A = 4.3 and you believe that the entire 1973-1995 period is representative of future expected References performance, what fraction of your portfolio should be allocated to T-bills and what fraction to equity? (Do not round intermediate calculations. Round your answers to 2 decimal places.) T-bills Equity Mc Graw Screenshot 12 16 No