12.5 points ebookprintreferencesitem 1 consider a risky portfolio. the end-of-year cash flow derived from the portfolio will be either $100,000 or $260,000 with equal probabilities of 0.5. the alternative risk-free investment in t-bills pays 3% per year. a. if you require a risk premium of 7%, how much will you be willing to pay for the portfolio?