a) [2 points.] Suppose you have a project that has a 70 per cent chance of doubling and a 30 per cent chance of halving your investment in a day. (This is a high-risk project indeed.) i. Compute the expected return and volatility of a one-period investment. ii. Compute the expected return per day, given that you can renew the project each day for a very long period of time in principle infinitely). b) If a security lies above the SML, it is overvalued. True or false? The presence of risk means that i) investors may profit more than they expected, ii) more than one outcome is possible, iii) final wealth may be greater or lower than initial wealth. Which one(s) is/are correct? Explain shortly