Jaffe.com uses its 10.2% cost of capital as its hurdle rate. It is considering two projects (which are NOT mutually exclusive) with the following features: Project 1: IRR = .09 Std. Dev. = .45 Correlation with market = .10. Project 2: IRR = .09 Std. Dev. = .17 Correlation with market = .90. The riskfree rate is 5%, the expected return on the market is 12%, and the standard deviation on the market is 20%.

What is the market risk of each project?