Refer the table below on the average excess return of the U$.$S$.$ equity market and the standard deviation of that excess

return. Suppose that the U$.$S$.$ market is your risky portfolio.

Required:

a$.$ If your risk$-$aversion coefficient is $A=4\mathrm{.}5$ and you believe that the entire $1927-2021$ period is representative of future

expected performance, what fraction of your portfolio should be allocated to T$-$bills and what fraction to equity?

Assume your utility function is $U=E(r)-0\mathrm{.}5A{}^2.$

b$.$ What if you believe that the $1975-1998$ period is representative?

Complete this question by entering your answers in the tabs below.

Required A

If your risk$-$aversion coefficient is $A=4\mathrm{.}5$ and you believe that the entire $1927-2021$ period is representative of future

expected performance, what fraction of your portfolio should be allocated to T$-$bills and what fraction to equity? Assume your

utility function is $U=E(r)-0\mathrm{.}5A{}^2.$

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.