Question: consider historical data showing that the average annual rate o return on the S&P 500 portfolio over the past 90 years has averaged roughly 8%

consider historical data showing that the average annual rate o return on the S&P 500 portfolio over the past 90 years has averaged roughly 8% more than the treasury bill return and that the S&P 500 standard deviation has been about 20% per year. Assume these values are representative of investors expectations for future performance and that the current t-bill rate is 5%

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Calculate the utility levels of each portfolio of problem 10 for an investor with A=2 What do you conclude

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