. Explain the criteria for assessing performance of a security, namely, expected rate of

return, standard deviation of rate of return, and coefficient of variation (CV). Explain how

by forming a portfolio an instrument can be generated that has properties better than

each of its constituents in terms of the standard deviation of rate of return and CV.

2. Please, consider the information you obtained in answering part 1 of the PA 2 in week 6

again . Suppose that the corporation is offered an investment which has the following

cash flows. Please justify if the project is feasible based on WACC that you calculated

in your PA 2.