Q#1. [10 POINTS] 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 20% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%. A. Calculate the expected return and variance of portfolios invested in T-bills and the S\&P 500 index with weights as follows: B. Calculate the utility levels (i.e., use the utility function given in Q#3 below) of each portfolio of Problem A for an investor with A=2. What do you conclude? C. Repeat Problem B for an investor with A=3. What do you conclude? Q#1. [10 POINTS] 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 20% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%. A. Calculate the expected return and variance of portfolios invested in T-bills and the S\&P 500 index with weights as follows: B. Calculate the utility levels (i.e., use the utility function given in Q#3 below) of each portfolio of Problem A for an investor with A=2. What do you conclude? C. Repeat Problem B for an investor with A=3. What do you conclude