A Essay Question: What are the risks in the marketplace and how do they relate? What can we do about these risks? What is the NPV for the following cash flow stream? The interest rate is 9.3% APR. Should you B accept the project? Year 0 1 2 3 4 5 6 7 8 CF -83 53 7 41 -7 52 -24 74 18 C Calculate the portfolio return, and beta for the following portfolio. Year Weight A 0.13 B C D E F G H | 0.04 0.12 0.13 0.05 0.11 0.15 0.14 0.13 Return -2.8% Beta -0.521 -2.8% 0.8759 5.9% E 0.506 2.7581 0.5835 Calculate the NPV, IRR, NPV profile, payback period (fractional and annual), and discounted payback period (fractional and annual) for the following cash flow with the company plans to fund the project with the new issuance of stock. Its stock price is below 5.3% 8.1% 5.7% 5.3% -0.409 -0.198 -1.269 1.6815 8.7% 3.1% E Year 0 1 2 3 4 5 CF -91 28 11 11 47 7 6 7 8 -22 65 -3 Year 1999 2000 23.62 34.73 2001 2002 2003 2004 32.67 29.19 29.17 27.68 24.47 33.08 31.11 2005 2006 2007 Price What is the average annual return, standard deviation, variance and 95% confidence interval for the following stock price series? Year 1999 2000 Price 37.3 31.45 2001 2002 2003 2004 2005 2006 48.21 42.95 52.87 53.96 59.58 64.21 2007 68.98