A company faces two kinds of risk. A firm-specific risk is that a competitor might enter its

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A company faces two kinds of risk. A firm-specific risk is that a competitor might enter its market and take some of its customers. A market risk is that the economy might enter a recession, reducing sales.

Which of these two risks would more likely cause the company’s shareholders to demand a higher return?

Why?

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Principles Of Macroeconomics

ISBN: 9780357133491

9th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 28, 2024 08:01 AM

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A company faces two kinds of risk. A firm-specific risk is that a competitor might enter its

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Principles Of Macroeconomics

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