Which of the following statements about project standing alone risk is true?

Question

Quizplus · Accepted Answer

Project standing alone risk only considers the risk of the specific project without taking into account the potential benefits of diversification within the firm's portfolio. Therefore, option A is the correct statement about project standing alone risk. Option B is referring to payback period risk, not project standing alone risk. Option C is referring to shareholder diversification risk, not project standing alone risk. Option D is not necessarily true as project risk measurement should be tailored to the specific company and its context, and there is no one-size-fits-all solution.

Which of the Following Statements About Project Standing Alone Risk