the end of theses at Consider the normal distribution on bonds suppose de average rate of return on bonds from what the standard 2009-2014 was 6.1% with a standard d deviations Provide all the distribution would look like for two, and three standard curve. prospective numbers and what this would look like on a normal distribution evaluate three they are Sharon Smith, the financial manager for Barnett to decide whether 10% investments Y, and Z Sharon will evaluate each of these investments to return she is to that her company already has in place, which have an expected and deviation of 7% expected returns and standard deviations of the investments The considering are as follows Define risk seeking, risk averse, and risk neutral (5) investments might she select if she 3 Which investment might she select if she were risk seeking? Which (10) was risk neutral? which investments might she select if she was risk averse? Explain your answers. nvestment X Investment Y 10% Investment 4. You buying four investments: stock in the technology field, one stock in the electric are invest utility field, and one US Treasury bond and one stock in the banking sector. or each discuss its diversifiable and non-diversifiable risk. a. Explain the difference between diversifiable and non-diversifiable risk. (5) b. n each type of risk for each of the investments. Try to come up with real world examples for each type of risk, for each type of investment. (10) 5 What is meant by the cost of capital? Why do we want to know about this? How does the cost of capital vary in the short term, medium term and long term? (5) 6 Explain the differences in your own words and explain why each term is important for a. The cost of long term debt, net proceeds, flotation costs define and explain each one, provide an example of each one (5) b The cost of retained earnings, the cost of preferred stock and the cost of new issue of common stock define and explain each one. Provide a real world example of each one