Dear Tutors,

I am having a hard time to deal with those 2 questions.

Please give me an advice.

a) Distinguish among beta (or market) risk, within-firm (or corporate) risk, and stand-alone risk for a project being considered for inclusion in a firm's capital budget.

b) In theory, market risk should be the only "relevant" risk. However, companies focus as much on stand-alone risk as on market risk. What are the reasons for the focus on stand-alone risk?