Chapter 06 1). What is risk and uncertainty? How would you differentiate between Objective Probabilities and "Subjective Probabilities"? 2). What are the advantages and drawbacks of risk-adjusted discount rate method? 3). What is Sensitivity Analysis? What are advantages and disadvantages (drawbacks) of sensitivity analysis? 4). Define and explain Scenario Analysis? 5). What is Probability Analysis? 6). Explain the mean-variance rule? Chapter 07 1). Describe the following with the help of a hypothetical graph each : a. Perfect Positive correlation, b. Perfect Negative correlation, and c. Zero correlation (Independent Investments) 2). Define Covariance? Show how the covariance and correlation coefficient are related