An Impact That the Changing Industry Boundaries Have Had Is

question 63

Multiple Choice

An impact that the changing industry boundaries have had is that:

• A) owners of companies can now define boundaries.
• B) there is an increase in the number of competitors for companies.
• C) technological changes do not affect companies anymore.
• D) the pattern of customer needs does not affect companies anymore.
• E) the number of product substitutes available for customers has reduced.

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Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly used in the pricing of risky securities.

Expected Return

The weighted average of all possible returns of an investment, considering all risks and the likelihood of each outcome.

Well-diversified Portfolio

An investment portfolio with a mix of assets designed to reduce exposure to risk by spreading investments across various sectors or asset classes.

Price of Money

Often refers to the interest rate, reflecting the cost of borrowing money or the return on savings, generally influenced by inflation, supply and demand for credit, and monetary policy.