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Determine the risk premium of each portfolio, ([E(R) RFR]/) if the risk-free rate is 2.5 percent. Portfolio Expected Return (%) Standard Deviation (%) P 10

Determine the risk premium of each portfolio, ([E(R) RFR]/) if the risk-free rate is 2.5 percent.

Portfolio Expected Return (%) Standard Deviation (%)
P 10 15
R 12 10
S 8 16

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