Question

PLEASE HELP!!!!

Answer 1

Consumption risk negatively impacted the studio’s business.

Explanation:

The consumption risk of an asset is typically measured as the contemporaneous co variance of the marginal utility of consumption and the return on that asset. The long-term consumption risk of different portfolios largely explains the observed differences in average returns.

Consumer risk depends on the taste and demand of the consumer of the movie. Since the story quality of the two sequels was poor and critics gave them low ratings. Because of this, attendance figures were very low for the movie in the studio and it affected the business of the studio.

Answer 2

Consumption risk negatively impacted the studio’s business.

Explanation:

Consumption risk depends on the consumer's taste and demand of the movie. Due to poor story and low ratings by the critics, the demand was affected. This resulted in low turn up volume of audience, affecting the movie studio's business. Consumption risk can be averted at the development phase by proper understanding of the consumer demand.