The value curve is a convenient tool to help managers visualize how new disruptions might be

If a company's structure is not aligned with the competitive environment or fluid enough to deal with environmental changes, what is a likely outcome for that company?

a. The company will be faced with media backlash due to its poor environmental standards. b. The company will naturally correct its errors without much effort. c. The company's costs will rise directly from its inability to keep up with rising demand. d. The company will likely not be successful and succumb to competitors.

Richard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company. What is the expected return and standard deviation of each company?

State of the Economy Probability of the State Expected Return Sunglasses Company Expected Return Umbrella Company Sunny .50 25% 0% Rainy .50 0% 25% A) The expected return for each company is 12.50% and the standard deviation for each company is 0.00%. B) The expected return for each company is 12.50% and the standard deviation for each company is 12.50%. C) The expected return for each company is 12.50% and the standard deviation for each company is 156.25%. D) The expected return for each company is 12.50% and the standard deviation for each company is 25.00%.