The ____ of an industry is a function of retention rate and return on equity.
A) Expected return
B) Expected business risk
C) Expected financial risk
D) Expected growth rate
E) Expected sales volatility

Question

Quizplus · Accepted Answer

The expected growth rate of an industry is a function of its retention rate (ability to keep customers) and return on equity (ability to generate profits). This growth rate is a key factor in determining the attractiveness of investing in the industry.

The ____ of an Industry Is a Function of Retention