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Basic Question 3 of 8
Which statement is true?
B. To mitigate the impact of cyclicality, firms may try to stabilize revenues by hedging or to minimize variable costs through outsourcing.
C. The higher the Herfindahl-Hirshman Index, the more competitive the industry.
D. Product market risk is not generally a consideration for mature businesses.
A. As macro risks apply to essentially all businesses in a country, all industries are equally sensitive to all economic risk factors.
B. To mitigate the impact of cyclicality, firms may try to stabilize revenues by hedging or to minimize variable costs through outsourcing.
C. The higher the Herfindahl-Hirshman Index, the more competitive the industry.
D. Product market risk is not generally a consideration for mature businesses.
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe various types of business models
CFA® 2025 Level I Curriculum, Volume 2, Module 7.