The most relevant measure of risk for capital budgeting is project standing alone risk.

Question

Quizplus · Accepted Answer

The most relevant measure of risk for capital budgeting is not project standing alone risk, but rather the project's contribution to the overall risk of the company. This is known as the project's corporate risk, which takes into account the project's impact on the company's overall risk and diversification. Therefore, the answer is false, and the relevant measure of risk for capital budgeting is corporate risk.

The Most Relevant Measure of Risk for Capital Budgeting Is