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Question 1: Should portfolio effects impact the way investors think about the risk of individual stocks? Why or why not? Question 2: What happens to

Question 1: Should portfolio effects impact the way investors think about the risk of individual stocks? Why or why not?

Question 2: What happens to the options time value as the stock price rises? Why?

Question 3: What is the difference between independent and mutually exclusive projects? Provide an example.

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