Stars Technologies is considering two potential projects, X and Y. In assessing the projects' risk, the company has estimated the beta of each project and has also conducted a simulation analysis.

Project X Project Y

Expected NPV $300,000 $300,000

Standard deviation (NPV) $180,000 $150,000

Estimated project beta 1.8 1.2

Which of the following statements is most correct?

a. Project X has a higher level of total risk relative to Project Y.

b. Project Y has a lower level of market risk relative to Project X.

c. Statements a and b are correct.

d. None of above.