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Which one of the following is the computation ofthe risk premium for an individual security? E ( r ) isthe expected return on the security,

Which one of the following is the computation ofthe risk premium for an individual security? E(r) isthe expected return on the security, if is the risk-free rate, I is the security's beta, and E(r)M is theexpected rate of return on the market.a. E(r)- E(r)MOb. E(r)-(E(r)M + rf)CC. E(r)M - rfOd.d. BLE(+)M - rE]

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