L4

You are considering a risky investment that you expect will either be worth 165,000 in 1 year, or 95,000 , with probabilities of 0.6 and 0.4 for each outcome, respectively. You could invest in riskless T-bills at 0.047 . If you invest in this risky investment, you would expect to earn a risk premium of 0.073 Given this information, what would you be willing to pay for this investment? 118,358 113,881 106,615 122,321 109991