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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
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. Consider the case of another company. Chrome Printing is evaluating two mutually exclusive 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 below. Which of the following statements about these projects' risk is correct? Check all that apply. Project B has more stand-alone risk than Project A. Project A has more corporate risk than Project B. Project A has more stand-alone risk than Project B. Project A has more market risk than Project B
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