e. The IRR of the proposed investment is \%. (Round to two decimal places.) f. The MIRR of the proposed investment is \%. (Round to two decimal places.) g. Should Rieger International accept or reject the proposed investment? (Select the best answer below.) A. Reject B. Accept 7: Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) following table: 7. The firm has a cost of capital of 8%. a. Calculate the payback period for the proposed investment. b. Calculate the discounted payback period for the proposed investment. c. Calculate the net present value (NPV) for the proposed investment. d. Calculate the probability index for the proposed investment. e. Calculate the internal rate of return (IRR) for the proposed investment. f. Calculate the modified internal rate of return (MIRR) for the proposed investment. g. Evaluate the acceptability of the proposed investment using NPV, IRR, and MIRR. a. The payback period of the proposed investment is years. (Round to two decimal places.) b. Calculate the discounted cash flows for the proposed investment in the following table. (Round to the nearest cent.) The discounted payback period of the proposed investment is years. (Round to two decimal places.) c. The NPV of the proposed investment is $ d. The probability index of the proposed investment is e. The IRR of the proposed investment is (Round to the nearest cent.) (Round to two decimal places.) \%. (Round to two decimal places.) following table: 5. a. Calculate the portfolio return, rp, for each of the 6 years assuming that 60% is invested in VOO and 40% is invested in QQQ. b. Calculate the average annual return for each ETF and the portfolio over the six-year period. c. Calculate the standard deviation of annual returns for each ETF and the portfolio. How does the portfolio standard deviation compare to the standard deviations of the individual ETFs? d. Calculate the correlation coefficient for the two ETFs. How would you characterize the correlation of returns of the two ETFs? e. Discuss any likely benefits of diversification achieved by Jamie through creation of the portfolio. a. The portfolio return for year 2014 is The portfolio return for year 2015 is The portfolio return for year 2016 is The portfolio return for year 2017 is The portfolio return for year 2018 is The portfolio return for year 2019 is %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.) \%. (Round to two decimal places.) \%. (Round to two decimal places.) \%. (Round to two decimal places.) b. The average return of VOO over the 6 -year period is The average return of QQQ over the 6-year period is The average return of the portfolio over the 6 -year period is c. The standard deviation of VOO returns over the 6 -year period is The standard deviation of QQQ returns over the 6-year period is %. (Round to two decimal places.) %. (Round to two decimal places.) \%. (Round to two decimal places.) %. (Round to two decimal places.) \%. (Round to two decimal places.) The standard deviation of the portfolio returns over the 6-year period is %. (Round to two decimal places.) The standard deviation of the portfolio returns is (1) d. The correlation coefficient between VOO and QQQ is than the standard deviation of QQQ but (2) (Round to two decimal places.) How would you characterize the correlation of returns of the two ETFs? (Select the best answer below.) A. The two ETFs are strongly positively correlated. B. The two ETFs are strongly negatively correlated. e. Are there any benefits of diversification achieved by Jamie through creation of the portfolio? (Select the best answer below.) A. Yes, combining these two strongly positively correlated assets will significantly reduce the overall portfolio risk. B. No, combining these two strongly negatively correlated assets will not significanly reduce the overall portfolio risk. C. Yes, combining these two strongly negatively correlated assets will significantly reduce the overall portfolio risk. D. No, combining these two strongly positively correlated assets will not significantly reduce the overall portfolio risk. 5: Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (1) more (2) less less more