Portfolio Models

question 79

Multiple Choice

Portfolio models

• A) provide a long-term time perspective for analyzing the organization's external environment.
• B) examine the competitive position of an organization's principal rivals.
• C) classify SBUs to determine the future cash contribution that can be expected from each of them.
• D) are not effective in situations where management must make resource allocation decisions across product lines.

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Definitions:

Expected Values

The predicted average of all possible outcomes of a random variable, weighted by their probabilities.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Mean Values

Statistical measures representing the average value in a set of data, calculated by summing all observations and dividing by the number of observations.

Individual

A single human being as distinct from a group, class, or family.