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It is, to say the least, risky for a firm to develop self-driving cars. Here are three firms that are working on producing driverless cars:
It is, to say the least, risky for a firm to develop self-driving cars. Here are three firms that are working on producing driverless cars: Waymo, Nvidia, and Teslas. Assume that Lydia is managing a pension fund that has $350 billion in assets. Two years ago the manager added $100 million of Nvidia stock to the fund. Now the manager is considering adding $100 million of Waymo. Assume Waymo, on a standalone basis, is a very risky firm. Does adding Waymos stock to the pension fund increase the overall risk of the portfolio? Explain.
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