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If a project is a small relative to the total firm, and if its returns are not highly correlated with the returns on the firms

If a project is a small relative to the total firm, and if its returns are not highly correlated with the returns on the firms other aspects, then the projest may not be very risky in either the within-firm (corporate) or the market risk sense, even if the returns on the projects are highly uncertain and thus the project has a high degree of stand-alone risk

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