All else equal investment and expected NPV

Risk Measure Project A Project B

Standard Deviation $400,000 $600,000

Project Beta 0.9 0.7

Correlation coefficient of project cash flow 0.6 0.4

Which of the following statements about theses projects' risk is correct?

Project B has more market risk than Project A

Project B has more corporate risk than Project A

Project A has more market risk than Project B

Project B has more stand-alone risk than Project A