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Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,000 or $165,000, with equal probabilities of 0.5 . The

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Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,000 or $165,000, with equal probabilities of 0.5 . The alternative riskless investment in T-bills pays 4% Required: o. If you require a risk premium of 9%, how much will you be willing to pay for the portfolio? (Round your answer to the nearest dollar omount.) b. Suppose the portfolio can be purchased for the amourt you found in (a) What wil the expected rate of return on the portfolio be? (Do not round intermediote colculotions. Round your answer to the nearest whole percent.) c. Now suppose you require a nsk premium of 13\%. What is the price you will be willing to pay now? (Round your answer to the neorest dollor omount)

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