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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 averaged

roughly $8\%$ more than the Treasury bill return and that the S&P $500$ standard deviation has been about $22\%$ per year. Assume these

values are representative of investors' expectations for future performance and that the current T$-$bill rate is $3\%.$

Calculate the utility levels of each portfolio for an investor with $A=3.$ Assume the utility function is $U=E(r)-\mathrm{.}5A{}^2.($Negative

amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to $4$ decimal places.$)$

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Consider historical data showing that the average annual rate of return on the SI&P $500$

portfolio over the past $85$ years has averaged roughly $8\%$ more than the Treasury bill

return and that the SI&P $500$ standard deviation has been about $22\%$ per year. Assume

these values are representative of investors' expectations for future performance and

that the current T$-$bill rate is $3\%.$ Calculate the utility levels of each portfolio for an

investor with $A=3.$ Assume the utility function is $U=E(r)-0\mathrm{.}5A{}^2.($Negative

amounts should be indicated by a minus sign. Do not round intermediate calculations.

Round your answers to $4$ decimal places.$)$