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An investor is considering making an investment in the market portfolio that he expects to yield year - end cash flows of $ 2 2

An investor is considering making an investment in the market portfolio that he expects to yield year-end cash flows of $220,000 upon the sale of the investment. The required risk premium on the market portfolio is 8% and the risk free rate is 4%. What would she be willing to pay today for the risky portfolio?

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