According to Michael Porter, There Are Five Determinants of Competition

question 1

Multiple Choice

According to Michael Porter, there are five determinants of competition.An example of _____ is when competitors seek to expand their share of the market.

• A)threat of entry
• B)rivalry between existing competitors
• C)pressure from substitute products
• D)bargaining power of buyers

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Definitions:

Investment Company

A corporation or trust engaged in the business of investing the pooled capital of investors in financial securities.

Risk Aversion

The tendency of investors to prefer safer or less risky investments over riskier options.

Historical Standard Deviation

A statistical measure of market volatility based on past price movements.

Expected Return

The anticipated amount of profit or loss an investment is projected to generate.