Answer the three questions. Include diagrams and / or mathematical expressions where appropriate. (Neat hand-drawn diagrams and hand-written mathematical expressions are acceptable.) 1. (Answer each part in 2-5 sentences.) Amazon listed the following risk factors in Item 1A. of its 2017 10-K. State which of the following risks are mainly unique risks and which are mainly market risks Explain your reasoning. Our Supplier Relationships Subject Us to Risks: We lack long-term arrangements with most of our suppliers so if suppliers stop selling to us, it may damage our operating results. a. We Have Foreign Exchange Risk: When revenues from our international websites are converted to dollars, our profitability could be harmed. b. We Could Be Harmed by Data Loss or Other Security Breaches: Our sales are web-based so data loss or security breach could adversely affect our operating results and profitability c. We Could Be Subject to Additional Sales Tax: States and foreign jurisdictions impose taxes with little or no warning; failure to comply with these laws could result in significant penalties that could damage our profitability. d. We Face Significant Inventory Risk: Seasonality of some products, rapidly changing consumer tastes, and spoilage may cause us to be understocked or overstocked in some products, hurting our operating results and profitability. e. 2. (Answer in 4-8 sentences.) Portfolio S is a three-stock portfolio. Portfolio L is a 100-stock portfolio. Explain carefully why Portfolio L has a smaller return variance, that is, why L2