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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:

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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: Portfolio ac Expected Return Standard Deviation 8.3% 10.4 % 10.1 14.1 4.8 5.5 12.7 17.9 7.9 6.7 a. For each portfolio, calculate the risk premium per unit of risk that you expect to receive ([E(R) - RFR]/o). Assume that the risk-free rate is 2.0 percent. Round your answers to four decimal places. b. 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- + has the -Select- 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

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