A. The Clorox Company considers launching a new version of Armor All designed to clean and protect notebook computers. (Choose the best answer below.)
A. The market risk of the cash flows from this new product is not similar to that of Clorox's other household products; therefore, assuming it has the same risk as the average risk of the firm is reasonable.
B. The market risk of the cash flows from this new product is likely to be similar to that of Clorox's other household products; therefore, assuming it has the same risk as the average risk of the firm is not reasonable.
C. The market risk of the cash flows from this new product is likely to be similar to that of Clorox's other household products; therefore, assuming it has the same risk as the average risk of the firm is reasonable.
D. The market risk of the cash flows from this new product is not similar to that of Clorox's other household products; therefore, assuming it has the same risk as the average risk of the firm is not reasonable.