Question
An investment would return a cashflow in 1 yr from now, with the probabilities: P Value 0.2 $ 100,000 0.4 $ 400,000 0.4. $ 70,000
An investment would return a cashflow in 1 yr from now, with the probabilities:
P Value
0.2 $ 100,000
0.4 $ 400,000
0.4. $ 70,000
The investment's = 1.3
Risk free rate = 0.5%.
Market Risk premium = 4.8%
The maximal amount you would pay for this investment would be $ _____________.
Please show calculations
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Emotions In Finance Booms Busts And Uncertainty
Authors: Jocelyn Pixley
2nd Edition
1107633370, 978-1107633377
