What Is Forward Integration

question 11

Multiple Choice

What is forward integration?

• A) The integration of a company's existing management information systems
• B) The integration of data from multiple sources, which provides a unified view of all data
• C) Sending information entered into a given system automatically to all downstream systems and processes
• D) Sending information entered into a given system automatically to all upstream systems and processes

---

Definitions:

Arbitrage Opportunity

The opportunity to purchase a financial instrument at a reduced cost in one marketplace and sell it at an elevated price in a different marketplace to capitalize on the discrepancy between the two prices.

Risk-Free Rate

The theoretical return on an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.

Expected Return

The weighted average of all possible returns for an investment, taking into account the probabilities of each outcome, and a key concept in portfolio management and capital budgeting.

Factor Sensitivities

Refers to the responsiveness of an asset's return to changes in underlying factors, often used in the context of multifactor models to evaluate investment risk.