What are some important concepts for individual investors to consider when evaluating the risk and returns of various investments?

Explain the following statement: “The stand-alone risk of an individual corporate project may be quite high, but viewed in the con-
text of its effect on stockholders’ risk, the project’s true risk may not
be very large.”How does the correlation between returns on a project and returns
on the firm’s other assets affect the project’s risk?
What are some important concepts for individual investors to consider when evaluating the risk and returns of various investments?