A new restaurant may be a booming success ( 15% probability), a moderate success ( 25% probability), barely survive ( 30% probability), or fail entirely (30\%) within two years. The restaurateur will earn payoffs of $160000,$80000,$25000, or $80000. What is the expected payoff and variance of these payoffs to the proprietor? A business, seeking a loan of $1.75 million, is facing an equal probability of stagnation or rapid growth next year, earning either $2 million or $4 million in net income, respectively. If the current risk-free interest rate is 4.5%, what promised interest rate must this business promise a lender to obtain the loan? A business, seeking a loan of $1.75 million, is facing an equal probability of stagnation or rapid growth next year, earning either $2 million or $4 million in net income, respectively. If the current risk-free interest rate is 18.5%, what promised interest rate must this business promise a lender to obtain the loan