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

question 76

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%.
$\begin{array}{c}\begin{array}{lll}\\a.\\b.\\c.\\d.\\e.\end{array}\begin{array}{r}\underline{\text{A}}\\0.068 \\0.414 \\0.700 \\0.300 \\0.650\end{array}\begin{array}{r}\underline{\text{B}}\\0.027 \\0.276 \\0.680 \\0.280 \\0.580\end{array}\begin{array}{r}\underline{\text{C}}\\0.072 \\0.389 \\0.605 \\0.205 \\0.480\end{array}\end{array}$

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Definitions:

Valid Deed

A legal instrument that transfers ownership of real property from one person to another, which must meet certain requirements such as being in writing, having a clear description of the property, and being properly executed and delivered.

Intent to Convey

The legal determination or declaration of a party's intention to transfer rights, property, or interest from one to another.

Soil

The top layer of the Earth's surface, consisting of rock and mineral particles mixed with organic matter, which supports plant life.

Waters Contained

Bodies of water that are held or confined within a certain area, as in reservoirs, tanks, or naturally contained basins.