Coefficient of variation acts as trade-off in risk-return

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1. Project L costs $40,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 10%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

2. Explain how the coefficient of variation acts as a trade-off between risk and return.

3. Explain the role of weights in determining portfolio return.

Reference no: EM131924788

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