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Use the given financial data to indicate which firm has the higher degree of each type of risk. Which firm has more business risk

Sagot :

Parrain

Based on the given matrics, the firm with more business risk is Purple Panda.

Why does Purple Panda have more business risk?

A company is said to have more business risk if the standard deviation of its expected Net operating profit after tax (NOPAT) is high.

This is because there is a greater variation in the NOPAT which means that a company has a greater risk of making less as well as more returns. Purple Panda has a high NOPAT standard deviation and so is riskier.

Find out more on Business risk at https://brainly.com/question/713210.

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