Format Wars, in the Context of High-Technology Industries, Refer To

question 11

Multiple Choice

Format wars, in the context of high-technology industries, refer to:

• A) battles to control the source of differentiation, and thus the value that the differentiation can create for the customer.
• B) the confusion among customers that arises as a result of several choices of formats for PCs and other gadgets.
• C) the price-based battles in the network of complementary products, which is a primary determinant of the demand for an industry's product.
• D) conflicts within an organization about which format to adopt for their products.
• E) price-based battles among companies producing similar products.

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Definitions:

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio in comparison to the market as a whole, indicating how sensitive the portfolio is to market movements.

Security Market Line

A line that represents the relationship between the risk of an investment and its expected return, used in capital asset pricing model (CAPM) to determine risk-adjusted returns.

Unsystematic Risk

The risk associated with a specific company or industry, also known as "diversifiable risk" or "idiosyncratic risk."

Expected Risk Premium

The additional return over the risk-free rate that investors demand to compensate for the risk of holding a risky asset.