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Please help me solve this Your friend is contemplating buying a local restaurant. He has assessed the lifetime profits, including resale, to be $10 million

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Your friend is contemplating buying a local restaurant. He has assessed the lifetime profits, including resale, to be $10 million with 20% chance, $6 million with 60% chance or $3 million with 20% chance. Knowing the most your friend would pay for the restaurant is $6 million, what can you infer about the situation? o A. The expected payoff of the restaurant is $6.333 million, the risk-premium being required by your friend is $0 and your friend is risk neutral with respect to this purchase. o B. The expected payoff of the restaurant is $6.2 million, the risk-discount being offered by your friend is $200,000 and your friend is risk averse with respect to this purchase. o C. The expected payoff of the restaurant is $6.2 million, the risk-premium being required by your friend is $200,000 and your friend is risk averse with respect to this purchase. o D. The expected payoff of the restaurant is $6.333 million, the risk-premium being required by your friend is $333,000 and your friend is risk seeking with respect to this purchase

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