The ____ the variability of a project's cash flows, and the ____ the positive correlation between the project's cash flow and the MNC's cash flow, the lower the risk of the project.
A) higher; higher
B) higher; lower
C) lower; lower
D) lower; higher

Question

Quizplus · Accepted Answer

Lower variability in a project's cash flows indicates more predictability and stability, reducing risk. A lower positive correlation between the project's cash flow and the MNC's overall cash flow means that the project's performance is less tied to the company's overall performance, spreading risk more effectively.

The ____ the Variability of a Project's Cash Flows, and the ____

The the Variability of a Project's Cash Flows, and the