Which one of the following is the computation of the risk premium for an individual security? E(R) is the expected return on the security,R_fis the risk-free rate, is the security's beta, and E(R_M) is the expected rate of return on the market.

1)[E(R_M) -R_f]

2)E(R_M) -R_f

3)E(R) - E(R_M)

4)E(R) - [E(R_M) +R_f]