1. Chamroeun, he wants to invest in Souvenir Stores. He has done several researches about Souvenir Stores and narrowed his choices to two, namely, Souvenir Store (X), and Souvenir Store (Y) with the cash flows for which are listed below. (40 Points). Year 0 1 2 3 4 Souvenir Store X -$500,000 200,000 250,000 300,000 250,000 Souvenir Store Y -$ 400,000 150,000 200,000 250,000 300,000 Which Souvenir Store does Chamroeun, he want to invest in? if discounted rate = 10% Using the following methods: A. Calculate Pay Back Period and Discounted Pay Back Period B. Compute NPV, PI and IRR 2. Consider the following information on a portfolio of three assests: (60 Points). State of Economy Boom Good Poor Bust Probability 30% 35% 20% 15% Souvenir S. (X) 40% 35% -20% -15% Souvenir S.(Y) 45% 40% -25% -15% Souvenir S. (Z) 35% 30% -20% -10% A. If Chamroeun, he invested $ 250,000 in Souvenir Store (X) and $ 200,000 in Souvenir Store (Y), and $ 550,000 in Souvenir Store (Z). Which Souvenir Store does Chamroeun, he want to invest in? B. What is the Correlation of Corr (X, Y)?, Corr (X, Z)?, and Corr (Y,Z)? C. Calculate standard deviation on portfolio of these assets