4.

Taussig Technologies is considering two potential projects, X and Y.In assessing the projects' risks, the company estimated the beta of each project versus both the company's other assets and the stock market, and it also conducted thorough scenario and simulation analyses.This research produced the following numbers:

Project X

Project Y

Expected NPV

$350,000

$350,000

Standard deviation (NPV)

$100,000

$150,000

Project beta (vs. market)

1.4

0.8

Correlation of the project cash flows with cash flows from currently existing projects.

Cash flows arenotcorrelated with the cash flows from existing projects.

Cash flows arehighlycorrelated with the cash flows from existing projects.

Which of the following statements is CORRECT?

Group of answer choices

Project X has more corporate (or within-firm) risk than Project Y.

Project X has more market risk than Project Y.

Project X has more stand-alone risk than Project Y.

Project X has less market risk than Project Y.

Project X has the same level of corporate risk as Project Y.