Given $100,000 to invest, what is the expected risk premium in dollars of investing in equities versus
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Given $100,000 to invest, what is the expected risk premium in dollars of investing in equities versus risk-free T-bills (U.S. Treasury bills) based on the following table?
Action Probability Expected Return Invest in equities .6 $50,000
.4 $30,000 Invest in risk-free T-bill 1.0 $ 5,000
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