5. Within-firm risk and beta risk n ckholder WSP Inc. involved in a wide range of unrelated projects. The company will use any project that this will cree Consequently, the risk level of the company's projects tends to vary a great deal from project to project IT WSP Inc does not risk-adjust its discount rate for specific projects property, which of the following is to ro c k that a The firm will increase in value. The firm's overall risk level will increase The firm could potentially reject projects that provide a higher rate of return than the company should require When a project involves an entirely new product line, the firm may be able to obtain betas from calculate a weighted average cost of capital (WACC) for its new product line Consider the case of another company: Turnkey Printing is evaluating two mutually exclusive projects. They both require a $1 million investment today and have expected NPS of $200 Management conducted a full risk analysis of these two projects, and the results are shown below. Project A $80,000 Project $120,000 Risk Measure Standard deviation of project's expected NPVS Project beta Correlation coefficient of project cash flows (relative to the firm's existing projects) 0.7 0.9 Which of the following statements about these projects' risk is correct? Check all that apply. O Project B has more corporate risk than Project A. O Project A has more stand-alone risk than Project B. O Project B has more market risk than Project A Save & Co O Project A has more corporate risk than Project B