Question

Lesco's is evaluating a project that has a different level of risk than the overall firm. This project should be evaluated: Group of answer choices

Answer 1

Answer:

3. using a beta commensurate with the project's risks.

Explanation:

In the case when the project is evaluated so there is the different type of the risk instead of the total firm so here the project should be evaluated via beta commensurate alonhg with the risk of the project. As each and very project has the different level of risk also there is a different between the beta as if we compared to the beta of the market, beta of the firm etc

Hence, the above represent the answer