Multiple Choice
An investor can choose to invest in T-bills paying 5% or a risky portfolio with end-of-year cash flow of $132,000.If the investor requires a risk premium of 5%,what would she be willing to pay for the risky portfolio?
A) $100,000
B) $108,000
C) $120,000
D) $145,000
E) $147,000
Correct Answer:
Verified
Correct Answer:
Verified
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