Question: 9. Within-firm risk and beta risk Aa Aa Understanding risks that affect projects and the impact of risk consideration Garcia Real Estate is involved in


9. Within-firm risk and beta risk Aa Aa Understanding risks that affect projects and the impact of risk consideration Garcia Real Estate is involved in commercial real estate ventures throughout the United States. Some of these ventures are much riskier than other ventures because of market conditions in different regions of the country If Garcia does not risk-adjust its discount rate for specific ventures properly, which of the following is likely to occur over time? Check all that apply. The firm could potentially reject projects that provide a higher rate of return than the company should require. The firm will increase in value. The firm's overall risk level will increase. When a project involves an entirely new product line, the firm may be able to obtain betas from line
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