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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
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
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