3. A project requires and investment of $1.000 now and will generate a cash flow after 1 year. The expected value and the standard deviation of this cash flow are $1,080 and $200. The mean and standard deviation of the market retum are 8% and 10%. The risk free interest rate is 3%. The correlation between the cash flow and the market return is 0.2. COV(x, y) (correlation between x and y= ) - (a) What is the NPV of this project to the investors if the investors invest widely in the economy? (b) What is the NPV of this project to the investors if the investors are equally risk averse as those investors in (a) but only invest in this project? (c) Should the project be taken? 3. A project requires and investment of $1.000 now and will generate a cash flow after 1 year. The expected value and the standard deviation of this cash flow are $1,080 and $200. The mean and standard deviation of the market retum are 8% and 10%. The risk free interest rate is 3%. The correlation between the cash flow and the market return is 0.2. COV(x, y) (correlation between x and y= ) - (a) What is the NPV of this project to the investors if the investors invest widely in the economy? (b) What is the NPV of this project to the investors if the investors are equally risk averse as those investors in (a) but only invest in this project? (c) Should the project be taken