Understanding risks that affect projects and the impact of risk consideration

Consider the case of another company. Kim Printing is evaluating two mutually exclusive projects. They both require a $3 million investment today and have expected NPVs of $600,000. Management conducted a full risk analysis of these two projects, and the results are shown below.

Risk Measure	Project A	Project B
Standard deviation of projects expected NPVs	$240,000	$360,000
Project beta	0.9	0.7
Correlation coefficient of project cash flows (relative to the firms existing projects)	0.7	0.5

Which of the following statements about these projects risk is correct? Check all that apply.

1.) Project A has more market risk than Project B.

2.) Project A has more corporate risk than Project B.

3.) Project A has more stand-alone risk than Project B.

4.) Project B has more market risk than Project A.