Refer the table below on the average excess return of the U$.$S$.$ equity market and the standard devlation of that

excess return. Suppose that the U$.$S$.$ market is your risky portfollo.

Required:

a$.$ If your risk$-$aversion coefficlent is $A=4\mathrm{.}2$ and you believe that the entire $1927-2021$ perlod is representative of

future expected performance, what fraction of your portfollo should be allocated to T$-$bills and what fraction to

equity? Assume your utility function is $U=E(r)-0\mathrm{.}5A{}^2.$

b$.$ What If you belleve that the $1975-1998$ perlod is representative?

Complete this question by entering your answers in the tabs below.

If your risk$-$aversion coefficient is $A=4\mathrm{.}2$ and you believe that the entire $1927-2021$ period is representative of future

expected performance, what fraction of your portfolio should be allocated to T$-$bills and what fraction to equity? Assume you

utility function is $U=E(r)-0\mathrm{.}5A{}^2.$

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.