Aa Aa E. 6. Within-firm risk and beta risk Understanding risks that affect projects and the impact of risk consideration Garcia Real Estate is involved in commercial real estate ventures throughout the United States. Some of these ventures are much riskier than other ventures because of market conditions in different regions of the country. If Garcia does not risk-adjust its discount rate for specific ventures properly, which of the following is likely to occur over time? Check all that apply. The firm will become less risky The firm will make poor capital budgeting decisions that could jeopardize the long-run viability of the Company The firm will reject too many relatively safe projects. When a project involves an entirely new product line, the firm may be able to obtain betas from to calculate a weighted average cost of capital (WACC) for its new product pure-play companies in the new area the firm's previous projects