Expected rate of return on the portfolio

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c with equal probabilities of 0.5. The alternative riskless investment in T-bills pays 5%. a. If you require a risk premium of 12%, how much will you be willing to pay for the portfolio? (Round your answer to the nearest dollar amount.) b. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be? (Do not round intermediate calculations. Round your answer to the nearest whole percent.) c. Now suppose you require a risk premium of 17%. What is the price you will be willing to pay now? (Round your answer to the nearest dollar amount.)

Reference no: EM132630475

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