whats the answer

Look at the data in Table 6.7 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. Average annual return U.S. Equity Market 1-month Emcess Standard Period U.S. equity T-bills retum deviation Sharpe ratio 1927-2021 12.17 3.30 8.87 20.25 0.44 1927-1950 10.26 0.93 9.33 26.57 0.35 1951-1974 10.21 3.59 6.63 20.32 0.33 1975-1998 17.97 6.98 11.00 14.40 0.76 1999-2021 10.16 1.66 8.50 18.85 0.45 Table 6.7 Average annual return on stocks and 1-month T-bills; standard deviation and Sharpe ratio of stocks over time (a) If your risk-aversion coefficient is 4 = 4 and you believe that the entire 1927-2021 period is the representative of future expected performance, what fraction of your portfolio should be allocated to T-bills and what fraction to equity? (b) What if you believe that the 1975-1998 period is representative