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A) Differentiate between perfect negative correlation and perfect positive correlation. B) Explain the concept of diversification in investment portfolio. C) What are the two (2)

A) Differentiate between perfect negative correlation and perfect positive correlation.
B) Explain the concept of diversification in investment portfolio.
C) What are the two (2) advantages of Payback Period?
D) Amaryllis Incorporated is attempting to evaluate the feasibility of investing RM95,000 in a piece of equipment that has a 5-year life. The firm has estimated cash inflows
associated with the proposal as shown in the following table. The firm has a 12% cost of capital.

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