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 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 = 3. Assume the utility function is U = E(r) − 0.5 × Aσ2. (Do not round intermediate calculations. Round your answers to 4 decimal places.)

WBills _________Windex _____U(A = 3)

0.2.........................0.8....................

0.4.........................0.6....................

0.8.........................0.2....................

1.0.........................0.0....................

0.6.........................0.4....................

0.0.........................1.0....................