Suppose that 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:

a. Why do the corporate and market beta differ for the same project?
b. What is the overall corporate beta of Apex Health Services? k Is the calculated beta consistent with corporate risk theory?
c. What is the overall market beta of Apex Health Services?
d. How does the riskiness of Apex€™s stock compare with the riskiness of an average stock?
e. 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 riskstock?

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Market Beta Project Walk-in clinic MRI facility Clinical laboratory X-ray laboratory Amount Invested S 500,000 2,000,000 1,500,000 1,000,000 $5,000,000 Corporate Beta 1.5 1.2 0.9 0.5 1.5 0.8 1.0