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You are considering a risky investment that you expect will either be worth 165,000 in 1 year, or 95,000 , with probabilities of 0.6 and

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You are considering a risky investment that you expect will either be worth 165,000 in 1 year, or 95,000 , with probabilities of 0.6 and 0.4 for each outcome, respectively. You could invest in riskless T-bills at 0.047. If you invest in this risky investment, you would expect to earn a risk premium of 0.073 Given this information, what would you be willing to pay for this investment? 113,881 106,615 118,358 122,321 109,991

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