A company faces two kinds of risk. A firm-specific risk is that a competitor might enter its

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A company faces two kinds of risk. A firm-specific risk is that a competitor might enter its market and take some of its customers. A market risk is that the economy might enter a recession, reducing sales. Which of these two risks would more likely cause the company's shareholders to demand a higher return? Why?

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Principles of Economics

ISBN: 978-1305585126

8th edition

Authors: N. Gregory Mankiw

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