Stand alone risk in Capital Budgeting

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Estimating the cash flows of a project is the most difficult part of capital budgeting. Since we are dealing with cash flows in the future, there is a lot of uncertainty involved with estimating future cash flows. One of the components of a project's risk is Stand-alone risk. It is the risk of the project as a separate entity. Stand-alone risk can be measured using the standard deviation and coefficient of variation ...