8. Consider two firms producing DVD recorders. One uses a highly automated robotics process, whereas the other

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8. Consider two firms producing DVD recorders. One uses a highly automated robotics process, whereas the other uses workers on an assembly line and pays overtime when there is heavy production demand.

a. Which firm will have higher profits in a recession? In a boom?

b. Which firm’s stock will have a higher beta?

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Investments

ISBN: 9780077261450

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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