As a practical matter,it is much easier to use market risk analysis at the project level than at the divisional level because it is easier to estimate the beta of a single project such as a machine tool die maker than the beta of an entire division (or subsidiary)such as Phillip Morris' Kraft foods unit.

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Market risk analysis can be more complex at the project level because estimating the beta of a single project requires isolating its specific risks and how it correlates with the market, which can be challenging. At the divisional level, such as Phillip Morris' Kraft Foods unit, the diversification of projects and activities can make it easier to estimate beta as it reflects a broader range of operations and their combined market risks.

As a Practical Matter,it Is Much Easier to Use Market