1) You have the following net working capital information from a project at the end of each year. What are the investment in Net Working Capital during year 2, and the impact of NWC on Cash Flow in year 3 respectively?

Year 0	Year 1	Year 2	Year 3
0	$2,400	$4,500	$1,500

Multiple Choice

a) -$2,100; -$3,000.

b) $4,500; $1,500.

c) $2,100; -$3,000.

d) $2,100; $3,000.

e) -$2,100; $3,000.

2) Youre considering forming a risk-free portfolio composed of two assets with the following information. Under which scenario will you reach your goal?

	Asset A	Asset B
Expected Return	10%	15%
Standard Deviation	25%	40%

Multiple Choice

a) Correlation (A,B) = -1; Weight (A) = 38.46%.

b) Correlation (A,B) = 0; Weight (A) = 38.46%.

c) Correlation (A,B) = 0; Weight (A) = 61.54%.

d) Correlation (A,B) = 1; Weight (A) = 38.46%.

e) Correlation (A,B) = -1; Weight (A) = 61.54%.

f) Correlation (A,B) = 0; Weight (A) = 61.54%.