The ____ a project's variability in cash flows, and the ____ the positive correlation between the project's cash flow and the MNC's cash flow, the lower the risk of the project.
A) higher; higher
B) higher; lower
C) lower; lower
D) lower; higher

Question

Quizplus · Accepted Answer

Lower variability in cash flows and a lower positive correlation with the MNC's cash flow reduce the project's risk, as they indicate more predictable and independent cash flows.

The ____ a Project's Variability in Cash Flows, and the ____

The a Project's Variability in Cash Flows, and the