$8$

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

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