Corporate risk does not take into consideration the effects of stockholder's diversification; it is measured by a project's effect on the firm's earnings variability.

Name: Corporate risk does not take into consideration the effects of stockholder's diversification; it is measured by a project's effect on the firm's earnings variability.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Corporate risk focuses on the impact of a project's earnings variability on the overall company, regardless of the stockholder's diversification.

Corporate Risk Does Not Take into Consideration the Effects of Stockholder's