Consider two firms producing smart phones. One uses a highly automated robotics process, whereas the other uses

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Consider two firms producing smart phones. One uses a highly automated robotics process, whereas the other uses workers on an assembly line and pays overtime when there is heavy production demand.
a. Which firm will have higher profits in a recession? In a boom?
b. Which firm’s stock will have a higher beta?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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