Manufacturers of Weightbegone are concerned that genetic advances in weight control might reduce the demand for their diet snacks.This is an example of
A)firm-specific risk,which will likely raise shareholders' demand for higher return.
B)firm-specific risk,which will likely not likely raise shareholders' demand for higher return.
C)market risk,which will likely raise shareholders' demand for higher return.
D)market risk,which will likely not raise shareholders' demand for higher return.

Question

Quizplus · Accepted Answer

This is an example of firm-specific risk because it pertains to a particular company (Weightbegone) and its product demand. Such risks typically lead shareholders to demand a higher return to compensate for the increased risk.

Manufacturers of Weightbegone Are Concerned That Genetic Advances in Weight