When assuming that investors in the United States are most concerned with their exposure to the U.S. stock market, it is acceptable to use the U.S. market when measuring a U.S.-based MNC's project's beta.

Question

Quizplus · Accepted Answer

Since the investors in the United States are most concerned with their exposure to the U.S. stock market, it is reasonable to use the U.S. market when measuring a U.S.-based MNC's project's beta. However, this assumption may not hold true for multinational corporations with significant operations in other countries or for investors with a more diversified portfolio.

When Assuming That Investors in the United States Are Most