29 JR's is preparing to start a new project in an industry that differs significantly from its current operations. JR's has searched and found the beta of a firm that is a good fit as a pure play for this new project. Given this good fit, why might JR's assign a higher beta to the project than the beta of the pure play? 3.33 points Multiple Choice (8 02:36:34 JR's may use less debt in its operations than does the pure play firm. C ) The pure play firm has more experience in the new area than JR's does. O JR's should assign a project beta that is based on the average of JR's and the pure play firm's betas. O The project may incur flotation costs so a higher beta is warranted to offset the additional cost. O The expected project revenues may be less cyclical than those of the pure play firm. O