Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $55,000 or $300,000 with equal probabilities of 0.5. The alternative risk-free investment in T-bills pays 6% per year. a. If you require a risk premium of 5%, how much will you be willing to pay for the portfolio?
b. 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?c. Now suppose that you require a risk premium of 12%. What is the price that you will be willing to pay?d. Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?

The manager of a branch office of banco mexicali observed that during peak hours an average of 20 customers arrives per hour and that there is an average of 6 customers in the branch office at any time. how long does the average customer spend waiting in line and being serviced?

Abusiness cycle reflects in economic activity, particularly real gdp. the stages of a business cycle

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.