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Consider the following two investment alternatives: First, a risky portfolio that pays a 12.8% rate of return with a probability of 50% or a 4.0%

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Consider the following two investment alternatives: First, a risky portfolio that pays a 12.8% rate of return with a probability of 50% or a 4.0% rate of return with a probability of 50%. Second, a Treasury bill that pays 2.0%. The risk premium on the risky investment is 6.4% 2.0% 3.0% 8.4%

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