Practice mode Finance

External factors such as the expiry of key patents and competition in the industry affect what?

Correct answer D. Company’s beta

Explanation

Changes in patent protection and competition alter a firm's business risk and its sensitivity to market movements, which shifts its beta coefficient.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.