1. Calculating expected return for a portfolio is valuable becasue it can be used to forecast the future value of the portfolio it provides a benchmark for comparison to actual returns. True or false

2. Which of the following statementd are true in regard to the concept of correlation?

a. the value will always fall between -1 and 1.

b. a correlation of 0.1 indicates that there is a very small correlation between the two stocks.

c. A positive value indicates that when the return on one asset is positive, the return on the other asset will be positive.

d. none of the above

3. A project has the following cash flows

0	1	2	3
(500)	$100.00	$200	$270.00

What is the project's NPV if the interest rate is $6%?