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Author Question: Currently, Clemson Products has a beta of 1.2, and its sales and profits are positively correlated ... (Read 100 times)

camac77

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Currently, Clemson Products has a beta of 1.2, and its sales and profits are positively correlated with the overall economy. The company estimates that a proposed new project would have a higher standard deviation and coefficient of variation than one of the company’s average projects. 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?

The proposed new project would increase the firm’s market risk.


The proposed new project would increase the firm’s corporate risk.


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


The proposed new project would have less stand-alone risk than the firm’s typical project.



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Marked as best answer by camac77 on Aug 7, 2023

risolinick@gmail.com

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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camac77

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


aliotak

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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