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Positive correlation between the project

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The CEO of a U.S. based multinational corporation is having a discussion with his CFO during lunch time; they agree on some points and politely disagree on others. The conversation is about the relationship between/among some of the variables affecting the profitability of the firm. The discussion focuses on the following: "The risk of a project will be higher, if the project's variability in cash flows is ______, and the positive correlation between the project's cash flow and the MNC's cash flow is ______ ". If you were listening to the conversation, what would you agree on?

  • higher; higher
  • lower; higher
  • higher; lower
  • lower; lower

Reference no: EM131152650

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