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You are evaluating various investment opportunities currently available and you have calculated expected returns and standard deviations for five…

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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                      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]/σ). Assume that the risk-free rate is 3.0 percent.

Please show how answer was reach thanks, 

 
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