The Competitive Advantage Created by Following the Five Forces Model

question 2

Multiple Choice

The competitive advantage created by following the five forces model and offering higher value is ____ because competitors _____ the competitive advantage.

• A) permanent; cannot duplicate
• B) permanent; duplicate
• C) temporary; duplicate
• D) temporary; cannot duplicate

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Definitions:

Expected Variance

The anticipated value of the squared deviation of a random variable from its mean, used to predict the volatility or risk of financial returns.

Holding-Period Return

Is the total return received from holding an asset or portfolio of assets over a period of time, typically expressed as a percentage.

Dividend

A portion of a company's earnings distributed to shareholders, typically in cash or additional stock.