Question: Why is the correlation among project risk measures important? It can help predict market risk. The market risk of a project, relative to the market

Why is the correlation among project risk measures important? It can help predict market risk. The market risk of a project, relative to the market risk of the firm's other projects, depends on the aggregate market risk of the firm. When they are highly correlated, a project's stand-alone risk is a good proxy for its corporate risk and its market risk. None of the above

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