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 will increase in value.

The firm could potentially reject projects that provide a higher rate of return than the company should require.

Generally, a positive correlation exists between a project's returns and the returns on the firm's other assets. If this correlation is high $q,,$ standalone risk will be a good proxy for within$-$firm risk.