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	8.9	%	10.0	%
R	10.2		13.4
S	4.7		5.3
T	11.2		16.2
U	6.0		8.4

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 4.0 percent. Round your answers to four decimal places.

Q:

R:

S:

T:

U:

Using your computations in Part (a), explain which of these five portfolios is most likely to be the market portfolio. Round your answer to four decimal places.

Portfolio -Select-QRSTUItem 6 has the -Select-highestlowestItem 7 ratio of risk premium per unit of risk, , of these five portfolios so it is most likely the market portfolio.

Choose the correct CML graph.

The correct graph is -Select-graph Agraph Bgraph Cgraph DItem 9 .