R&D-Generated Ideas Can Be Differentiated from Marketing-Generated Ideas in That

question 54

Multiple Choice

R&D-generated ideas can be differentiated from marketing-generated ideas in that the latter ________.

• A) tend to be risky
• B) are less aligned with customer needs
• C) build on existing designs
• D) tend to be groundbreaking
• E) tend to be technologically innovative

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Definitions:

Unsystematic Risk

The risk associated with a specific issuer or a particular industry sector, unlike systemic risk, which impacts the entire market.

Increasing Market

A market trend characterized by rising stock prices and generally optimistic investor sentiment, often associated with economic growth.

Global Minimum Variance Portfolio

An investment portfolio that is designed to have the lowest risk (variance) for a given rate of return, by optimizing the allocation of assets.

Correlation Coefficient

A statistic in which the covariance is scaled to a value between −1 (perfect negative correlation) and +1 (perfect positive correlation).