In a previous paper Khan and Fiorino analyzed four energy saving projects. They found that use of the Capital Asset Pricing model to account for risk implied that the projects’ required rates of return were less than the return on riskless assets. Effectively lie projects bad negative risk. These negatively with macro economic activity. The current paper has two objectives: (1) to show that cafes of negative risk are rare and unimportant, and (2) to show that the assumption of negative covariance between energy price and the level of economic activity is incorrect.