The timing of investment commitments creates differing levels of risk for the firm.

Question

Quizplus · Accepted Answer

The timing of investment commitments can create differing levels of risk for a firm. For example, investing during a period of uncertainty or market volatility can increase risk compared to investing during a stable market period. Additionally, committing to investments too early or too late can also affect the risk level. Therefore, timing is an important consideration for managing risk in a firm's investment decisions.

The Timing of Investment Commitments Creates Differing Levels of Risk