You are considering a risky investment that you expect will either be worth 255 000...
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You are considering a risky investment that you expect will either be worth 255 000 in 1 year or 105 000 with probabilities of 0 45 and 0 55 for each outcome respectively You could invest in riskless T bills at 0 043 If you invest in this risky investment you would expect to earn a risk premium of 0 11 Given this information what would you be willing to pay for this investment O 163 882 O 158 227 O 144 538 O 154 681
You are considering a risky investment that you expect will either be worth 255 000 in 1 year or 105 000 with probabilities of 0 45 and 0 55 for each outcome respectively You could invest in riskless T bills at 0 043 If you invest in this risky investment you would expect to earn a risk premium of 0 11 Given this information what would you be willing to pay for this investment O 163 882 O 158 227 O 144 538 O 154 681
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