Exhibit 85
Use the Information Below for the Following Problem(S)

Short Answer

Exhibit 8.5
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c } \text { Partiolio } & \text { Expected Return } & \text { Standard Devintion } \\\hline \text { A } & 9.8 \% & 14.0 \% \\\text { B } & 6.7 \% & 9.8 \% \\\text { C } & 11.2 \% & 18.5 \%\end{array}$$
-Refer to Exhibit 8.5.Calculate the risk premium per unit of risk for the three portfolios above assuming the risk-free rate is 4.0%.
$\begin{array}{c}\begin{array}{lll}\\a.\\b.\\c.\\d.\\e.\end{array}\begin{array}{r}\underline{\text{A}}\\0.068 \\0.414 \\0.700 \\0.300 \\0.650\end{array}\begin{array}{r}\underline{\text{B}}\\0.027 \\0.276 \\0.680 \\0.280 \\0.580\end{array}\begin{array}{r}\underline{\text{C}}\\0.072 \\0.389 \\0.605 \\0.205 \\0.480\end{array}\end{array}$