Question: Problem 6-11 Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged

Problem 6-11 Consider historical data showing that the average annual rate

Problem 6-11 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 31% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 3%. -0.5 * Ao? (Do not round Calculate the utility levels of each portfolio for an investor with A=2. Assume the utility function is U = Intermediate calculations. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. WBills Windex 0.0 1.0 08 U( A2) 0.0961 17.6000 0.0780 0.0630 0.0460 0.0300

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