4. Risk analysis in capital budgeting Projects differ in risk, and risk analysis is a critical component of the capital budgeting process. Evaluating risk is an important part of the capital budgeting process. Which of the following is measured by the variability of the project's expected returns? Market, or beta, risk Stand-alone risk Corporate, or within-firm, risk The problem with using when trying to adjust for projects that are more risky or less risky than a firm's average project is that these adjustments are somewhat arbitrary