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Garcia Real Estate is involved in commercial real estate ventures throughout the United States. Some of these ventures are much riskler than other ventures because

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Garcia Real Estate is involved in commercial real estate ventures throughout the United States. Some of these ventures are much riskler 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's overall risk level will increase. The firm could potentially reject projects that provide a higher rate of return than the company should require. The firm will increase in value, Generally, a positive correlation exists between a project's returns and the returns on the firm's other assets. If this correlation is risk will be a good proxy for within-firm risk. Consider the case of another company. Davis Printing is evaluating two mutually excluslve projects. They both require a $1 million investment today and have expected NPVs of $200,000, Management conducted a full risk analysis of these two projects, and the results are shown belaw. Which of the following statements about these projects' risk is correct? Check alf thot apply. Project B has more corporate risk than Project A. Project A has more corporate risk than Project B. Project B has more stand-alone risk than Project A. Project A has more stand-alone risk than Project B

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