Consider a risky portfolio. The end$-$of$-$year cash flow derived from the portfolio will be either $$50,000$ or $$150,000,$ with equal probabilities of $0\mathrm{.}5.$ The alternative riskless investment in T$-$bills pays $4\%.$

Required:

a$.$ If you require a risk premium of $10\%,$ how much will you be willing to pay for the portfolio? $($Round your answer to the nearest dollar amount.$)$

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$?($Do not round intermediate calculations. Round your answer to the nearest whole percent.$)$

c$.$ Now suppose you require a risk premium of $14\%.$ What is the price you will be willing to pay now? $($Round your answer to the nearest dollar amount.$)$