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Refer the table below on the average excess return of the U.S. equity market and...

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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. a. If your risk-aversion coefficient is A=4.8 and you believe that the entire 1927-2018 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)0.5A2. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. If your risk-aversion coefficient is A=4.8 and you believe that the entire 1973-1995 period is representative of future expected performance, what fraction of your portfolio should be allocated to T-bills and what fraction to equity? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct

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