a. (5\%) Please give a numerical example to illustrate that the traditional approach of PERT,...

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a. (5\%) Please give a numerical example to illustrate that the traditional approach of PERT, using mean activity times to construct network together with Normal distribution approximation, can produce misleading results. b. (5%) We have discussed that the structure of Nelson Siegel Model is consistent with the PCA results that we obtained in analyzing interest rate term structure. Please explain in details. c. (5%) Use the market model introduced in chapter 4 , explain the advantage of diversification in managing investment portfolios

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