Under which of the following circumstances is the pure play method of

Under which of the following circumstances is the pure play method of estimating a project’s beta particularly useful?

A) The firm is looking to expand its current business operations, doing essentially the same work.
B) The firm is looking to expand its current business operations into a brand new area unlike any of its internal projects.
C) The firm is looking to expand its current business operations. The work will be essentially the same as current operations but there is no obvious outside provider of the same service or product.
D) The pure play method works equally effectively under each and all of these scenarios.

ANSWER

Answer: B