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The metrics of a company below: Beta Proportion of the project to the total company Average annual return in last 5 years 24% 9% 0.43

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The metrics of a company below: Beta Proportion of the project to the total company Average annual return in last 5 years 24% 9% 0.43 Project One Project Two Project Three 29% 12% 1.05 32% 11% 0.47 Project Four 15% 19% 1.13 The risk free rate of return is expected to be 3% and the market risk premium is expected to be 4%. After diversification, about 35% of the market value of the company would be represented by the overseas investment. Expected return - 25% Standard Deviation - 30% Correlation- -0.13 Overall standard deviation - 15% Calculate whether the shareholders of the firm receive an appropriate return for the risk they are undertaking and assess whether the company is making an adequate return from project one. The metrics of a company below: Beta Proportion of the project to the total company Average annual return in last 5 years 24% 9% 0.43 Project One Project Two Project Three 29% 12% 1.05 32% 11% 0.47 Project Four 15% 19% 1.13 The risk free rate of return is expected to be 3% and the market risk premium is expected to be 4%. After diversification, about 35% of the market value of the company would be represented by the overseas investment. Expected return - 25% Standard Deviation - 30% Correlation- -0.13 Overall standard deviation - 15% Calculate whether the shareholders of the firm receive an appropriate return for the risk they are undertaking and assess whether the company is making an adequate return from project one

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