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In a portfolio, risk is evaluated in a different way than with an individual project. In evaluating portfolio, risk we recognize that a risky investment
In a portfolio, risk is evaluated in a different way than with an individual project. In evaluating portfolio, risk we
recognize that a risky investment may create a portfolio with less risk.
All of these options are true.
need to consider the impact of a given project on the overall risk of the firm.
need to consider how the returns of the projects in the portfolio are correlated.
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