Suppose the apex health services has four different projects. These projects are listed below, along with the amount of capital invested and estimated corporate and market betas: Project walk-in clinic MRI facility clinical factory x-ray laboratory amount invested $. Please show steps how you get an answer and please be clear in your explanation.
Required:
Question 1: Why do the corporate and market betas differ for the same project?
Question 2: What is the overall corporate beta of Apex health services? Is the calculated beta consistent with corporate risk theory?
Question 3: What is the overall market beta of Apex Health Services?
Question 4: How does the riskiness of Apex's stock compare with the riskiness of an average stock?
Question 5: Would stock investors require a rate of return on Apex that is greater than, less than, or the same as the return on an average-risk stock?