Pizza Is Generally Considered a Recession Proof Commodity Offering

question 19

Multiple Choice

Pizza is generally considered a recession proof commodity offering. Which of the following will have the greatest impact on a pizza chain's sales?

• A) Bargaining power of customers
• B) Competitive pressure
• C) General economic conditions
• D) Availability of resources
• E) Competitive product innovation

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates greater volatility than the market, while a beta below 1 indicates less.

Risk-Free Rate

A hypothetic return rate on a risk-free investment, usually shown by the returns on government securities.

Expected Return

The weighted average of all possible returns from an investment, accounting for the likelihood of each outcome.

Standard Deviation

Standard Deviation measures the amount of variation or dispersion from the average, indicating the risk associated with a variable.