0609章习题分析和总结.docxVIP

Chapter 06 Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $70,000 or $200,000 with equal probabilities of .5. The alternative riskfree investment in T-bills pays 6% per year. If you require a risk premium of 8%, how much will you be willing to pay for the portfolio? Suppose that the portfolio can be purchased for the amount you found in ( a).What will be the expected rate of return on the portfolio? Now suppose that you require a risk premium of 12%. What is the price that you will be willing to pay? Comparing your answers to (a) and (c), what d