Part I The standard deviation of a portfolio is.. Generally less than the weighted average of the standard deviations of the individual assets b. Equal to the weighted average of the standard deviations of the individual assets. 0. Generally more than the weighted average of the standard deviations of individual assets. d. Generally approaches O as more and more sets are added e. Generally approaches 1 as more and more assets are added. Which of the following statements is CORRECT? a. Variable costs need to be considered in the analysis of a capital budgeting project, but not fixed costs. b. Variable costs and fixed costs need to be considered in the analysis of a capital budgeting project. c. The NPV criterion is preferable for evaluating expansion projects, while the IRR criterion is preferable for evaluating replacement projects. d. The IRR criterion is preferable for evaluating expansion projects, while the NVP criterion is preferable for evaluating replacement projects. e. None of the above. iii. Accelerated depreciation is usually preferred to straight-line depreciation becau of... a. operating working capital considerations. b. salvage value considerations. c. required rate of return considerations. d. time value of money considerations. e. none of the above. iv. Below is an illustration of the security market line