Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 90 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%. Required:
Calculate the utility levels of each portfolio for an investor with A = 3.

Assume the utility function is U =E(r) - 0.5 x A σ^2

Wbills Windex U (A=2)
0.0 1.0
0.2 0.8
0.4 0.6
0.6 0.4
0.8 0.2
1.0 0.0

Craig complained to his friend jess that a class was too hard and he believed that the teacher was not being fair with his grading standards. jess replied, "craig, you really have an attitude problem." what is the relationship between the manner that the term attitude is used in common conversation and the how it is defined in consumer behavior? there is no relationship. common usage is not the same as attitudes as seen by the researchers who study consumer behavior. the term attitude is widely used in popular culture in much the same way it is used in studying consumer behavior. they are different in that popular culture does not recognize that attitudes are temporary. otherwise the usage is the same. they are similar except that popular culture assumes that attitudes are related to beliefs, and research scientists have shown that there is no such relationship.