Have a greater coefficient of variation for team values

Reference no: EM133659621

Question: Consider two hypothetical professional leagues, both of which have revenue sharing across teams. League A has much larger national revenue from TV broadcasting rights. It provides a large amount of money each year to each team and is a steady stream from year to year. League B has smaller national revenue to share, but larger local media revenue than League A. However, the local revenue is more variable from year to year. Based on our conversations of actual leagues like the NFL and NBA, which league would you predict would, over time, have a greater coefficient of variation for team values?

Reference no: EM133659621

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