Question: QUESTION 11 Problem 5.3 (c) Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,000 or $170,000, with equal

QUESTION 11 Problem 5.3 (c) Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,000 or $170,000, with equal probabilities of 0.5. The alternative riskless investment in T-bills pays 6%. Now suppose you require a risk premium of 14% What is the price you will be willing to pay now? (Round your answer to the nearest dollar amount.)

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