Problem 4 An asset you are considering buying has a 25% chance of paying you $5,000 in one year, a 60% chance of paying you $4,000 in one year, and a 15% chance of paying you nothing. If your required rate of return for this investment is 20%, what fair value do you place on this investment? Problem 5 Consider the investment in problem 4. What is the highest possible realized rate of return you could achieve if you are able to buy the asset for its fair value