Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Taussig Technologies is thinking of two potential projects, X and Y. In assessing projects' risks, company estimated beta of each project versus both company's other assets and stock market, and it also conducted thorough scenario and simulation analyses. This research made the following numbers: Correlation of project cash flows with cash flows from presenly existing projects. Cash flows are not correlated with cash flows from existing projects. Cash flows are highly related with cash flows from existing projects.

Project X Project Y
Expected NPV $350,000 $350,000
Standard deviation (NPV) $100,000 $150,000
Project beta (vs. market) 1.4 0.8

Correlation of project cash flows with cash flows from presently existing projects. Cash flows are not correlated with cash flows from existing projects. Cash flows are highly correlated with cash flows from existing projects.

Which of the given statements is right?

Project X has more stand-alone risk than Project Y.
Project X has more corporate (or within-firm) risk than Project Y.
Project X has more market risk than Project Y.
Project X has the same level of corporate risk as Project Y.
Project X has less market risk than Project Y.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M932443

Have any Question? 


Related Questions in Business Management

Name three globalization trends and explain why a corporate

Name three Globalization trends and explain why a corporate decision-maker may need to be aware of these trends when making ethical strategy decisions.

A report on abcs good morning america show on august 13

A report on ABC's Good Morning America show on August 13, 2014 reported on "Getting ahead in the workplace" and addressed the question of, "Should Women be Sports-Savvy". It focused on the point that for women to be able ...

Assignmentread the following scenario and answer the

Assignment Read the following scenario and answer the corresponding questions upon your completion. Your response should be at least one page in length in standard essay form following APA style guidelines. Deerborn Elec ...

1 write a paper of no more than 1400 words describing the

1. Write a paper of no more than 1,400 words describing the effect Hurricane Katrina had on the nation's power infrastructure. 2. Indicate damages that Hurricane Katrina caused to the country's electrical system. Within ...

Discuss the primary characteristists of the us health care

Discuss the primary Characteristists of the US Health care System. in your own words.

Using your local telephone directory locate a service that

Using your local telephone directory, locate a service that offers background checks. Select one at random and call to determine the costs of conducting such checks. How much should an organization spend on conducting th ...

Workplace continuity and contingency planningthe purpose of

Workplace Continuity and Contingency Planning The purpose of the Business Impact Analysis (BIA) is to identify the exposures and to precisely quantify the potential destructive impact that the exposures could cause on th ...

The internet brings up new issues with jurisdiction if a

The internet brings up new issues with jurisdiction. If a company ships products to a State but does not have a physical presence in the State can they still be summoned to appear in Court in the State where the products ...

Aimthe stated aims of this course are1 to provide students

Aim The stated aims of this course are: 1. To provide students with an advanced understanding of the forms and methods of information communications technology, and with the knowledge of how information is processed and ...

Abc corp mines copper with xed costs of 060lb and variable

ABC Corp. mines copper, with ?xed costs of $0.60/lb and variable cost of $0.30/lb. The 1-year forward price of copper is $1.10/lb. The 1-year effective annual interest rate is 6.2%. One-year option prices for copper are ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen