Taussig Technologies Is Considering Two Potential Projects, X and Y

question 66

Multiple Choice

Taussig Technologies is considering two potential projects, X and Y. In assessing the projects' risks, the company estimated the beta of each project versus both the company's other assets and the stock market, and it also conducted thorough scenario and simulation analyses. This research produced the following numbers: Which of the following statements is correct?

• A) Project X has more stand-alone risk than Project Y.
• B) Project X has more corporate (or within-firm) risk than Project Y.
• C) Project X has more market risk than Project Y.
• D) Project X has the same level of corporate risk as Project Y.