. Suppose that at your hospital there are four different projects presented for consideration and purchase. These projects are listed below, along with the amount of capital invested and extimated corporate and market betas:

Project Amt Invested Corporate Beta Market Beta

Walk-in clinic $ 500,000 1.5 1.1

MRI facility $2,000,000 1.2 1.5

Clinical laboratory $1,500,000 0.9 0.8

X-ray laboratory $1,000,000 0.5 1.0

$5,000,000

9. a. . Why do the corporate and market betas differ for the same project?

9.b. What is the overall corporate beta for this firm? Is the calculated beta consistent with the with

corporate risk theory?

9.c. What is the overall market beta for the above firm?

9. d. How does the riskiness of the above firm