As a project's beta increases,the project's opportunity cost of capital increases.

Name: As a project's beta increases,the project's opportunity cost of capital increases.
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As a project's beta (systematic risk) increase, it becomes riskier and more volatile, which increases its opportunity cost of capital. This means investors may demand a higher return (in the form of interest or dividends) to compensate them for taking on greater risk.

As a Project's Beta Increases,the Project's Opportunity Cost of Capital