All of the following are correct statements about a project's total risk EXCEPT _____.
A) undiversified investors are concerned about the company's future outlook
B) it becomes the relevant risk when the project's returns are correlated to the returns from the firm as a whole
C) total project risk can be measured by calculating standard deviation
D) total project risk is irrelevant when forecasting a company's chance of bankruptcy

Question

Quizplus · Accepted Answer

Total project risk is not irrelevant when forecasting a company's chance of bankruptcy. In fact, understanding a project's total risk is important in assessing its impact on the company's overall financial health and potential for default.

All of the Following Are Correct Statements About a Project's