higher beta
Not what you're looking for?
A. Which firm will have higher profits in a recession? In a boom?
b. Which firm's stock will have a higher beta?
Purchase this Solution
Solution Summary
The expert consider two firms producing videocassette recorders. Which firms have a higher profit recession in a boom are determined.
Solution Preview
Discussion of basics
Risk is an aspect of any organization's operation. When it is recognized, understood, and managed, risk can set the stage for sustainable growth. Companies need identify risk within their operations and plan a systematic approach to managing it.
According to www.anao.gov.au:
"Effective risk management contributes to better decision-making because it develops a deeper insight into risks and their potential impact. It is a structured and disciplined approach: it aligns strategy, processes, people, technology, and knowledge with the purpose of evaluating and managing the uncertainties the enterprise faces as it creates value."
For our current purposes, we can classify the risk of a firm into two types
?Business risk and financial risk.
? Business risk is the riskiness of ...
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.