confused on this section

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 reject too many relatively safe projects. The firm will make poor capital budgeting decisions that could Jeopardize the long-run viability of the company. Generally, a positive correlation exists between a project's returns and the returns on the firm's other assets. If this correlation is alone risk will be a good proxy for within-firm risk stand- Consider the case of another company. Turnkey Printing is evaluating two mutually exclusive projects. They both require a $5 million investment today and have expected NPVs of $1,000,000. Management conducted a full risk analysis of these two projects, and the results are shown below. Risk Measure Standard deviation of project's expected NPVS Project beta Correlation coefficient of project cash flows (relative to the firm's existing projects) Project A Project B $400,000 $600,000 0.9 0. 0.2 0.5 Which of the following statements about these projects' risk is correct? Check all that apply, Project has more stand-alone risk than Project. A Project A has more stand-alone risk than Project B. Project A has more corporate risk than Project B Project B has more corporate risk than Project A