7-10. A firm has an existing portfolio of projects with an expected return of 11 percent a year. The standard deviation of these returns is 4 percent. The existing portfolio's value is $820,000. As financial manager, you are considering the addition of a new project, PROJ1. PROJ1's expected return is 13 percent with a standard deviation of 5 percent. The initial cash outlay for PROJ1 is expected to be $194,000. a. Calculate the coefficient of variation for the existing portfolio. b. Calculate the coefficient of variation for PROJ1. c. If PROJ1 is added to the existing portfolio, calculate the weight (proportion) of the existing portfolio in the combined portfolio. d. Calculate the weight (proportion) of PROJ1 in the combined portfolio. e. Assume the correlation coefficient of the cash flows of the existing portfolio and PROJ1 is zero. Calculate the standard deviation of the combined portfolio. Is the standard deviation of the combined portfolio higher or lower than the standard deviation of the existing portfolio? f. Calculate the coefficient of variation of the combined portfolio. g. If PROJ1 is added to the existing portfolio, will the firm's risk increase or decrease