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6.7.0 Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,000 or $175,000, with equal probabilities of 0.5. If

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6.7.0

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,000 or $175,000, with equal probabilities of 0.5. If you require a return of 12%, how much are you willing to pay for this portfolio

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