If a Project Is Small Relative to the Total Firm

question 11

True/False

If a project is small relative to the total firm, and if its returns are not highly correlated with the returns on the firm's other assets, then the project may not be very risky in either the within-firm (corporate) or the market risk sense, even if the returns on the project are highly uncertain and thus the project has a high degree of stand-alone risk.

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Definitions:

Motor Perseveration

The repetitive and continuous movement or action that an individual keeps doing in the same way despite the absence of a reason or the ability to adapt to new situations.

Infants

Describes young children, typically under one year of age, who are in the earliest stage of human development.

People Speaking

Involves the communication or dialogue between individuals, highlighting the verbal exchange of ideas and information.

Voices

The sounds produced by humans and animals using their vocal cords, especially when speaking or singing.