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Market Research Smolira Investment Trust (SIT) runs a retirement account for college professors, with a current market value of $2 billion. Alchemy, Inc., offers to

Market Research Smolira Investment Trust (SIT) runs a retirement account for college professors, with a current market value of $2 billion. Alchemy, Inc., offers to conduct market research in an attempt to sift through the market data to find a way to increase the return to SIT’s portfolio by 30 basis points per year. Alchemy is offering to conduct the research for the sum of $9 million. Is this price too high or too low?

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