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You are evaluating various investment opportunities currently available and you have calculated expected returns and standsrd deviations for five different well-diversified portfolios of risky assets:

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You are evaluating various investment opportunities currently available and you have calculated expected returns and standsrd deviations for five different well-diversified portfolios of risky assets: a. 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 5 . 0 percent. Raund your onswers to four decimal places. Q: R: S: T: b. Using your computaticns in Part (a), explain which of these five portfolios is most likely to be the market portfolio, Round your answer to four decimal places. Portfalia has the ratio of risk premium per unit of risk. , of these five portfolias so it is most likely the market portfolio; Choose the correct CML graph. The correct graph is: The correct graph is -select- B. A. Capital market Line B. Capital market Line c. Capital market Line Expected Rate of Return] C. Capital market Line D. Expected Rate of Return I c. If you are only willing to make an investment with =6.1% is it possible for you to eam a return of 6.1 percent? Do not round intermediate calculations. Round your answer to one decimal blace. Expected portolio return: 0 It possible to earn an expected return of 6.1% with a portfolio whose standard deviation is 6.1%. d. What is the minimum level of risk that would be necessary for an investment to eam 6.1 percent? Do not round intermediate calculations. Round your answer to one decimal place. What is the combosition of the portfolio along the CML that will ginerate that expected retum? Round your answers to four decimal places. WhekT: Wriak-free asue: e. Suppose you are now willing to make an investment with =17.5%. What would be the investment proportions in the riskless asset and the market partfolio for this portfolio? Use a minus sign to enter negative values, if any. Round your answers to four decimal places. What: Wrisk-tree wese: What is the expected return for this portfolio? Round your answer to one decimal place

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