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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 7.8% 10.5%

R 10.0 14.0

S 4.6 5.0

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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