Client's Financial Questions: Provide a brief discussion of approximately 300 words detailing the risks inherent in stock returns in a portfolio of shares using the concepts of standard deviation and diversification as a basis for your discussion. .Under what conditions can a firm's weighted average cost of capital be used for assessing new projects? In the context of the net present value (NPV) model discuss: o The conditions that must be observed such that a project that has a positive NPV should be chosen. Why, in these circumstances, would a project that has a positive NPV be chosen? o Why depreciation does not involve a flow of cash and therefore can be ignored. excluded from the cash-flow estimation o The effect of sunk costs within the analysis of a project's viability. Client's Financial Questions: Provide a brief discussion of approximately 300 words detailing the risks inherent in stock returns in a portfolio of shares using the concepts of standard deviation and diversification as a basis for your discussion. .Under what conditions can a firm's weighted average cost of capital be used for assessing new projects? In the context of the net present value (NPV) model discuss: o The conditions that must be observed such that a project that has a positive NPV should be chosen. Why, in these circumstances, would a project that has a positive NPV be chosen? o Why depreciation does not involve a flow of cash and therefore can be ignored. excluded from the cash-flow estimation o The effect of sunk costs within the analysis of a project's viability