4. Consider the following two investment alternatives: First, a risky portfolio that pays a 20%...

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Accounting

4. Consider the following two investment alternatives: First, a risky portfolio that pays a 20% rate of return with a probability of 60% or a 5% rate of return with a probability of 40%. Second, a Treasury bill that pays 6%. If you invest $50,000 in the risky portfolio, your expected profit after one year would be __________.(1 points)
a. $3,000
b. $7,000
c. $7,500
d. $10,000

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