Short concept: The three questions are repeated from the previous set. Use this space to answer your second choice. 1. What is total risk and what are its components? Is one of the components more relevant and why? OR 2. When calculating the value of a firm for an acquisition of a target firm, what factors would you consider when determining the discount rate for calculating this value? If there are gains of synergy associated with this acquisition, how will the acquiring firm account for this in their valuation of the target? OR 3. When calculating the risk and return of a 2 or 3 stock portfolio, what are the statistical components that you should take into account and why