The Boston Consulting Group (BCG)business Portfolio Analysis Requires an Organization

question 153

Multiple Choice

The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix.The horizontal axis of this matrix indicates

• A)the annual rate of growth of the SBU's industry.
• B)the relative dollar ($)market share of the largest competitor.
• C)the annual rate of growth of the firm's largest competitor.
• D)the relative unit (#)market share of the smallest competitor.
• E)the annual rate of growth of the firm itself.

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Definitions:

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio of investments in comparison to the market as a whole.

Market Expected Rate

The rate of return anticipated by investors in the market, based on the investment's risk and prevailing economic conditions.

Perpetual Cash Flow

Cash flow that continues indefinitely without cessation.

Listed Beta

A measure of an asset's volatility relative to the market as a whole, often used to assess risk.