Impacts of Competitor Selection Strategy on Firm Risk - Case in Vietnam Investment and Finance Industry

Competitor selection strategy is one of key factors that affect business strategy of our company, esp. In financial industry. We will use a single factor model in this paper to measure effects of this strategy on business risk. This paper mainly uses quantitative analysis and statistics, together with qualitative methods including synthesis, comparison and explanatory methods.Our research findings show that in case keeping current competitor size, we can minimize the risk disperse (beta measured at 0,233). One more result is that beta CAM and competitor size there is positive relationship.We also change size of competitors to double to measure impacts on beta CAPM.At last, we use results in order to suggest suitable policies.