1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Yakvenalex [24]
3 years ago
12

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 data: Expected NPV - Standard deviation (sNPV)Project X : $350,000 - $100,000Project Y : $350,000 - $150,000 Project beta (vs. market) : 1.4 - 0.8 Correlation of the project cash flows with cash flows from currently existing projects. Cash flows are not correlated with the cash flows from existing projects. Cash flows are highly correlated with the cash flows from existing projects.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. e. Project X has less market risk than Project Y.
Business
1 answer:
Mrrafil [7]3 years ago
3 0

Answer:

C) Project X has more market risk than Project Y.

Explanation:

Market risk refers to risks associated with the performance of the whole market, e.g. changes in interest rates, changes in commodity prices. Taussig Technologies cannot eliminate market risks since they depend on external factors.  

Project X has a higher beta (vs. market) than project Y, therefore it has more market risk.

You might be interested in
What occurs when steps are added to the value chain as new players find ways to add value to the business process?
vitfil [10]

A. Intermediaries

B. Disintermediation

C. Reintermediation

D. Cybermediation

Answer:

C. Reintermediation

Explanation:

-Intermediary refers to a party that acts as a link between two other parties to reach an agreement.

-Disintermediation is when intermediaries are removed in a supply chain.

-Reintermediation is when new intermediaries are introduced in a supply chain.

-Cybermediation is when there is an intermediary over the web.

According to this, the answer is that reintermediation is what occurs when steps are added to the value chain as new players find ways to add value to the business process.

4 0
4 years ago
Read 2 more answers
Tacit collusion is more likely to be a concern with horizontal alliances. vertical alliances. international alliances of any kin
OLga [1]

Answer:

horizontal alliances

Explanation:

A horizontal alliance is a term that describes a form of arrangements or partnership between businesses that conduct as competitors in the exact area.

In other words, competitors work in unison to enhance their strategy in the market.

On the other hand, Tacit Collusion occurs when firms avoid actions that are likely to require or demand a response from another firm often a competitor. For example, when a firm avoids the opportunity to price cut an opposition due to the fact that, the opposition may retaliate

Hence, Tacit collusion is more likely to be a concern with HORIZONTAL ALLIANCE

6 0
4 years ago
Which of the following is not one of the three advantages of dealing with a financial intermediary?. A financial intermediary pr
USPshnik [31]
A financial intermediary<span> is an institution which serves for financial transactions. The functions of a financial intermediary are the providing of line of credit, elimination of risks of investments and to denominate convenience to deposits and loans. The answer to this problem is B. </span>
6 0
3 years ago
Read 2 more answers
Jacob, a customer service representative for ab retailers, has seven levels of management between himself and the company's ceo.
Assoli18 [71]
Compared to YZ,<span> who has only four levels of management between her and the company CEO, </span> Jacob has seven levels of management between himself and the company's CEO's, which means that Jacob's company has tall type of organizational structure. The tall organizational structure is characterized with <span>CEO at the top and multiple levels of management.</span>
6 0
4 years ago
Which statement is true?
horrorfan [7]
I think it can be the "D"
4 0
3 years ago
Other questions:
  • The Federal Reserve influences the level of interest rates in the short run by changing the:
    12·1 answer
  • a project with an initial cost of 63800 is expected to generate annual cash flow of 16580 for the next 6 years what is the Proje
    13·1 answer
  • The mayor gave the winner a blue ribbon which kind of complement is the word in bold
    7·2 answers
  • Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:
    8·1 answer
  • You own a coal mining company and at your current production level your direct production costs are $20 per unit, while you are
    11·1 answer
  • Kaldon, Inc. acquired 2,500 of its own shares at $30 per share. The shares are to be held in treasury. The par value of Kaldon’s
    5·1 answer
  • Westmoreland Company Following are selected data from Westmoreland Company's financial statements.
    12·1 answer
  • 8.30662386 x 8.30662386
    8·1 answer
  • When organizations recognize that there is a need to improve the state of people, the planet, and profits simultaneously if they
    12·1 answer
  • Which resources does the us department of labor provide or sponsor? check all that apply. a state’s department of education sear
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!