Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,000 or...

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Consider a riskyportfolio. The end-of-year cash flow derived from the portfoliowill be either $60,000 or $170,000, with equal probabilities of0.5. The alternative riskless investment in T-bills pays 6%.
a. Ifyou require a risk premium of 10%, how much will you be willing topay for the portfolio? (Round your answer to the nearestdollar amount.)
Value of the portfolio $
b.Suppose the portfolio can be purchased for the amount you found in(a). What will the expected rate of return on theportfolio be? (Do not round intermediate calculations.Round your answer to the nearest whole percent.)
Rate of return %
c.Nowsuppose you require a risk premium of 14%. What is the price youwill be willing to pay now? (Round your answer to thenearest dollar amount.)
Value of theportfolio

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Consider a riskyportfolio. The end-of-year cash flow derived from the portfoliowill be either $60,000 or $170,000, with equal probabilities of0.5. The alternative riskless investment in T-bills pays 6%.a. Ifyou require a risk premium of 10%, how much will you be willing topay for the portfolio? (Round your answer to the nearestdollar amount.)Value of the portfolio $b.Suppose the portfolio can be purchased for the amount you found in(a). What will the expected rate of return on theportfolio be? (Do not round intermediate calculations.Round your answer to the nearest whole percent.)Rate of return %c.Nowsuppose you require a risk premium of 14%. What is the price youwill be willing to pay now? (Round your answer to thenearest dollar amount.)Value of theportfolio