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QUESTION
Dear Tutors,I am having a hard time to deal with those 2 questions.Please
Dear Tutors,
I am having a hard time to deal with those 2 questions.
Please
give me an advice.
a) Distinguish among beta (or market) risk, within-firm (or corporate) risk, and stand-alone risk for a project being considered for inclusion in a firm's capital budget.
b) In theory, market risk should be the only "relevant" risk. However, companies focus as much on stand-alone risk as on market risk. What are the reasons for the focus on stand-alone risk?
