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Business, 24.02.2022 17:50 hdawg07

Consider a risky portfolio. Its value next year is equally likely to be either $100,000 or $200,000 (the only two possibilities). A risk-free investment (Treasury bills) is available, paying 5% per year. 1. Suppose you require a risk premium of 8%. How much should you be willing to pay for the portfolio

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Consider a risky portfolio. Its value next year is equally likely to be either $100,000 or $200,000...
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