Question 13 (0.6 points) Individual investors: Can create a portfolio such that the portfolio beta is less than the lowest beta of any security held in the portfolio. Can generally create a diversified portfolio of risky assets such that the standard deviation of the portfolio equals one. Are responsible for eliminating unsystematic or asset individual risk. Need to own at least 250 stocks if they wish to create a diversified portfolio. Should expect to earn a rate of return based on the total cost of their portfolios. Question 14 (0.6 points) Total cash flow from a project is defined as: Operating cash flow plus depreciation minus capital spending. Earnings before interest and taxes plus taxes minus depreciation. Operating cash flow minus the change in net working capital plus capital spending. Operating cash flow minus capital spending minus the change in net working capital. Earnings before interest and taxes minus taxes plus depreciation. Question 13 (0.6 points) Individual investors: Can create a portfolio such that the portfolio beta is less than the lowest beta of any security held in the portfolio. Can generally create a diversified portfolio of risky assets such that the standard deviation of the portfolio equals one. Are responsible for eliminating unsystematic or asset individual risk. Need to own at least 250 stocks if they wish to create a diversified portfolio. Should expect to earn a rate of return based on the total cost of their portfolios. Question 14 (0.6 points) Total cash flow from a project is defined as: Operating cash flow plus depreciation minus capital spending. Earnings before interest and taxes plus taxes minus depreciation. Operating cash flow minus the change in net working capital plus capital spending. Operating cash flow minus capital spending minus the change in net working capital. Earnings before interest and taxes minus taxes plus depreciation