Question: answer asap please thanks Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years
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 37% 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 =2. Assume the utility function is U - EN - 0.5 * A02. (Do not round Intermediate calculations. Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign.) UIA - 2) WBills 0.0 0.2 O ooooo Windex 1.0 08 0.6 0.4 06 0.4 OOOO 0.8 10 02 0.0
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