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You are evaluating various investment opportunities currently available and you have calculated expected returns and standard deviations for five different well-diversified portfolios of risky assets:
You are evaluating various investment opportunities currently available and you have calculated expected returns and standard deviations for five different well-diversified portfolios of risky assets: Portfolio Expected Return Standard Deviation Q 7.80% 10.50% R 10 14 S 4.6 5 T 11.7 18.5 U 6.2 7.5 For each portfolio, calculate the risk premium per unit of risk that you expect to receive ([E(R-RFR]/?). Assume that the risk-free rate is 3.0 percent
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