Question

Allison peavy wants to invest but is worried about risk: in particular, she is worried that bad management and increased competition in the wireless phone market will make these companies less profitable than expected. what type of risk is allison most concerned with?

Answer 1

Allison is concerned with competitive risk. This refers to the idea that your competitors will negatively impact your business and sales and thus decrease your revenue. There are many types of competitive risk that can occur, but all stem from competitors in the market.