2. Understanding business and financial risks The total risk in a firm is determined by evaluating the firm's business risk and financial risk. As an analyst, Olivia is comparing two nearly identical manufacturing firms: Purple Panda Manufacturing Company and Purple Tiger Production Inc. It is your job to evaluate the relative business and financial risks of Purple Panda and Purple Tiger. The two firms have the same level of total assets and expected net operating profit after taxes (NOPAT), but they differ in two critical characteristicstion total debt and the standard deviation of the expected NOPAT. The following table outlines some of Purple Panda's and Purple Tiger's major Use the given financial data to indicate which firm has the higher degree of each type of risk. Which firm has more business risk? Purple Panda Purple Tlger Which firm has more financial risk? Purple Panda Purple Tiger