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Business, 12.03.2021 15:00 bethltaylor

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,000 or $175,000, with equal probabilities of 0.5. The alternative riskless investment in T-bills pays 5%. a. If you require a risk premium of 11%, how much will you be willing to pay for the portfolio

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Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,...
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