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Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $30,000 or $130,000, with equal probabilities of 0.5. The alternative

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Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $30,000 or $130,000, with equal probabilities of 0.5. The alternative riskless investment is T-bill pays 3%. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio? O A $130,000 OB. 531,524 C. $40,000 OD.572,727

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