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:

Body Weight

A measurement of an individual's mass, often used as an indicator of health in relation to height.

Food-Deprived Countries

Nations suffering from high levels of food insecurity, where access to sufficiently nutritious food is limited or inconsistent, leading to undernourishment or starvation.

Adoptive Siblings

Children who become siblings through the process of adoption, not by biological relation.

Body Mass Index

A measure used to assess a person's body weight relative to their height, often used to categorize underweight, normal weight, overweight, and obesity.