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:

Optic Nerve

A crucial nerve in the eye that transmits visual information from the retina to the brain.

Axon Fibers

Long, slender projections of nerve cells (neurons) that conduct electrical impulses away from the neuron's cell body.

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors and transmit it to the brain.

Opponent-process Theory

A psychological and neurological model that explains how humans perceive colors as the brain processes signals from the eyes in an antagonistic manner.