(Solved): Consider historical data showing that the average annual rate of return on the S\&P 500 portfolio o ...

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 \( 36 \% \) per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is \( 6 \% \). Calculate the utility levels of each portfolio for an investor with \( A=2 \). Assume the utility function is \( U=E(r)-0.5 \times A \sigma^{2} \). (Do not round intermediate calculations. Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign.)