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allsm [11]
2 years ago
5

Wansley Enterprises is considering a new project. The company has a beta of 1.0, and its sales and profits are positively correl

ated with the overall economy. The company estimates that the proposed new project would have a higher standard deviation and coefficient of variation than an average company project. Also, the new project's sales would be countercyclical in the sense that they would be high when the overall economy is down and low when the overall economy is strong. On the basis of this information, which of the following statements is CORRECT?a)The proposed new project would have more stand-alone risk than the firm’s typical project.
b)The proposed new project would increase the firm’s corporate risk
c)The proposed new project would increase the firm’s market risk.
d)The proposed new project would not affect the firm’s risk at all
e)The proposed new project would have less stand-alone risk than the firm’s typical project.
Business
1 answer:
Bezzdna [24]2 years ago
4 0

Answer:

A. The proposed new project would have more stand-alone risk than the firm's typical project.

Explanation:

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<h3>What is the Share price?</h3>
  • The cost of one share of a group of marketable equity shares of a firm is known as the share price.
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  • Analysts estimate the behavior of asset prices, especially share prices in stock markets, using random walk approaches in economics and financial theory.
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Hence, the current share price is approximately $69.47

To learn more about Share price from the given link

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1 year ago
Digicon Inc. is a firm with mindshare in the category of digital cameras. With reference to this information, which of the follo
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d.The digital cameras manufactured by the firm are seen as the standard for competitors to match.

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