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Consider a risky portfollo. The end-of-year cash flow derived from the portfollo will be elther $95,000 or $240,000 with equal probabilitles of 0.5 . The

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Consider a risky portfollo. The end-of-year cash flow derived from the portfollo will be elther $95,000 or $240,000 with equal probabilitles of 0.5 . The alternatlve risk-free Investment in T-bills pays 4% per year. Required: a. If you require a risk premium of 6%, how much will you be willing to pay for the portfolio? b. Suppose that the portfollo can be purchased for the amount you found in (a). What will be the expected rate of return on the portfolio? c. Now suppose that you require a risk premlum of 12%. What price are you willing to pay? Complete this question by entering your answers in the tabs below. If you require a risk premium of 8%, how much will you be willing to pay for the portiolio? Notet Do not round your intermediate calculations. Round your 2 swer to the nearest whole dollar amount. Suppose that the portfolio can be purchased for the amount you found in (a). What will be the expected rate of return on portfolio? Note: Round your intermediate calculations and final answer to the nearest whole number. Now suppose that you require a risk premium of 12%. What price are you willing to pay? Note: Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount

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