Question: Check my work Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has

Check my work 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= EA-0.5 Ao. (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations. Round your answers to 4 decimal places.) U(A=3) WBills 0. 0 0.2 04 Windex 1.01 0.8 0.6 0.4 0.6 0.2 00

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