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Question 6 2 pts 6/What is corporate risk? (select all that apply) The project's total risk, if it were operated independently. Usually measured by standard
Question 6 2 pts 6/What is corporate risk? (select all that apply) The project's total risk, if it were operated independently. Usually measured by standard deviation (or coefficient of variation). However, it ignores the firm's diversification among projects and investors' diversification among firms. Corporate risk is a function of the project's NPV and standard deviation and its correlation with the returns on other firm projects. The project's risk when considering the firm's other projects, i.e., diversification within the firm
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