The correct answer is: D. Both B and C
- Within firm risk is the risk that is specific to a particular company or project. It can be caused by factors such as the company’s industry, its financial condition, or its management team.
- Corporate risk is the risk that is common to all companies in a particular industry. It can be caused by factors such as economic conditions, changes in government regulations, or technological advances.
The type of variability in which a project contributes in return of company is considered as both within firm risk and corporate risk. This is because the project’s return will be affected by both the company’s specific circumstances and the overall economic environment.
For example, if a company is in a cyclical industry, the project’s return will be affected by the ups and downs of the economy. Similarly, if the company is in a highly competitive industry, the project’s return will be affected by the actions of its competitors.
Therefore, it is important for companies to consider both within firm risk and corporate risk when evaluating the potential return of a project.