A project's contribution-to-firm risk does allow for diversification within the firm.

Question

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A project's contribution-to-firm risk can be reduced through diversification within the firm. This means that the risk associated with a particular project can be offset by the performance of other projects or business units within the same firm. By diversifying their portfolio of projects or businesses, a firm can reduce overall risk and increase the likelihood of achieving long-term success.

A Project's Contribution-To-Firm Risk Does Allow for Diversification Within the Firm