The Strength of Intel as a Dominant Producer of Microprocessors

question 72

Multiple Choice

The strength of Intel as a dominant producer of microprocessors would be an example of _____ in the PC industry.

• A)strength of potential new entrants to the market
• B)the bargaining power of suppliers
• C)the bargaining power of buyers
• D)the threat of substitute products or services
• E)existing rivals or competitors

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Definitions:

Beta

A measurement of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Capital Market Line

A theoretical line representing the risk versus return of the market of all investable assets, assuming risk-free borrowing and lending rates.

Security Market Line

A representation of the capital asset pricing model which shows the relationship between risk (as measured by beta) and expected return of investments.

Expected Return

The anticipated profit or loss an investment is predicted to generate, acknowledging the potential for volatility and risk.