Suppose that Apex Health Services has four different projects. These projects are listed below, along with the amount of capital invested and estimated corporate and market betas:

Project Amount Invested Corporate Beta Market Beta

Walk-in Clinic 500,000 1.5 1.1

MRI FACILITY 2,000,000 1.2 1.5

Clinical lab 1,500,000 0.9 0.8

X-ray lab 1,000,000 0.5 1.0

• Why do the corporate and market betas differ for the same project?
• What is the overall corporate beta of Apex Health Services? Is the calculated beta consistent with corporate risk theory?
• What is the overall market beta of Apex Health Services?
• . How does the riskiness of Apexs stock compare with the riskiness of an average stock?
• Would stock investors require a rate of return on Apex that is greater than, less than, or the same as the return on an average-risk stock?