Nexterra is one of clean energy companies in fortune 500 companies and it is is energy oriented company.
Three opportunities are as follows-
A. It is a diversification strategy because it is is dependent upon movement of commodity prices.
B. it will help with the hedging of the portfolio because it will not move in line with the equity markets completely.
C. It has a leading manufacturer in the the clean energy sector and it is a leading clean energy Company so it can maximize its Overall benefits.
Three risk associated with this stock are as follows -
A. It has a high uncertainty relating to its growth because it is is operating in the energy sector.
B. Reinvestment risk in the sector is very high so this company has a lot of reinvestment risk.
C.potential of losing the market share is also high because this company is already having a large amount of market share.
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