portfolio. The end-of-year cash flow derived from the portfolio will be either 00.000 with equal probabilities of .5. The alternative risk-free investment in 4. Consider a risky portfolio. The $70,000 or $200,000 with T-bills pays 6% per year. a. If you require a risk premi portfolio? quire a risk premium of 8%, how much will you be willing to pay for the that the portfolio can be purchased for the amount you found in (a). What will be the expected rate of return on the portfolio? pose that you require a risk premium of 12%. What is the price that you will be willing to pay? paring your answers to (a) and (c), what do you conclude about the relationship sen the required risk premium on a portfolio and the price at which the portfolio will sell