3. Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or S150,000, with equal probabilities of 05. The alternative riskless investment in Tbilis pays 5% If you require a risk premium of 10%, how much will you be willing to pay for the portfolio Answer: a b. Suppose the portfolio can be purchased for the amount you found in ( a ). What will the expected rate of return on the portfolio be? Answer: c. Now suppose you require a risk premium of 12%. What is the price you will be willing to pay now? Answer: d. Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell