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Suppose there are two possible states for the economy over the next year, boom or bust, and these two states are equally likely to occur.

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Suppose there are two possible states for the economy over the next year, boom or bust, and these two states are equally likely to occur. An asset you may invest in has a payoff forecast of 160 million in the boom state and 64 million in the bust state. The risk-free rate is 20% and a risk premium of 20% is required for assets with similar risk features. What is the maximum price you would agree to pay for this asset today? the question is related to risk management

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