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Question 1: (a) Distinguish between beta (or market) risk, within-firm (or corporate) risk, and standalone risk for a project being considered for inclusion in the

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Question 1: (a) Distinguish between beta (or market) risk, within-firm (or corporate) risk, and standalone risk for a project being considered for inclusion in the capital budget. (b) Which of the above type of risk do you believe should be given the greatest weight in capital budgeting decisions? Explain. Question 2: Qwarm Industries is evaluating the following independent capital budgeting projects: Qwarm generally considers risk when examining projects by applying the capital asset pricing model (CAPM) to determine the appropriate required rate of return for each project. If the risk-free rate is 3 percent and the market risk premium is 9 percent, which project(s) should Qwarm purchase

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