Question: JR ' s is preparing to start a new project in an industry that differs significantly from its current operations. JR ' s has searched

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 good 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?

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