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The BRC Company is considering the introduction of a new line of high end electronics.Because there is considerable uncertainty with regard to the demand for the products,the company would probably be served better by a variable cost structure.
Countercyclical Stock
A stock whose performance is inversely related to the economy's performance, often doing well during economic downturns.
U.S. Treasury Bills
Short-term government securities issued at a discount from par value and mature in a year or less, representing a secure debt obligation of the US government.
Risk Level
A measure of the potential for loss in an investment or business venture.
Portfolio Variance
A measure of the dispersion of returns of a portfolio, indicating the degree of investment risk.
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