Question: please help Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged
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 29% per year. Assume these values are representative of investors' expectations for future performance, and that the current T-bill rate is 4%. Calculate the utility levels of each portfolio for an investor with A=2. Assume the utility function is U=E(r)=0.5Ao2. (Do not round intermediate calculations. Round your onswers to 4 decimal places. Negotive amounts should be indicated by o minus sign.) Answer is complete but not entirely correct
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