QUESTION 15 You are considering two investment alternatives. The first is to invest in a...
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QUESTION 15 You are considering two investment alternatives. The first is to invest in a risky portfolio that is expected to generate either 15% return with a probability of 60% or 5% return with a probability of 40%. The second is to invest in a T-bill that pays a sure rate of 6%. What is the risk premium on the risky portfolio? A. 2% B. 5% C. 9% D. 11%
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