Norris Enterprises an all-equity firm has a beta of 2.0.The chief financial offi

Norris Enterprises an all-equity firm has a beta of 2.0.The chief financial officer is evaluating a project with anexpectedreturn of 14% before any risk adjustment. The risk-free rateis 5% and the market risk premium is 4%. The project beingevaluated is riskier than an average project in terms of both itsbeta risk and its total risk. Which of the followingstatements is CORRECT?