Diversified Risk and Capital Investment Essay Part 1 For the Part 1, you will create a portfolio of 5-8 stocks that demonstrates diversified risk. List the stocks along with their current price and previous 1-year and 5-year rates of return. Below the list of stocks respond to each question in paragraph format. - Explain the difference between portfolio risk and stand-alone risk. - How does risk aversion affect a stock’s required rate of return? - Explain the distinction between a stock’s price and its intrinsic value. Part 2 For the purposes of Part 2, a project is defined as any endeavor that had a capital outlay. Pick a project you have recently completed or one you would like to complete in the near future. This could be a project in your home, place of work, or even church or other organization you are familiar with. Respond to the following prompts: - Introduce your project with a reflection on the importance of selecting the right projects in which to invest capital. - Describe the relationship between risk and return, and how you would measure for both in your project. - Explain how you would calculate the weighted average cost of capital (WACC), and its components for your project. Parts 1 and 2 should be submitted in a single document for a combined total of at least two pages in length. Use headings and subheadings specify parts 1 and 2 and as necessary. You are required to cite and reference at least your textbook. Use APA style guidelines. Title and reference page do not count towards minimum page length requirement.