Portfolio Management Frameworks (E

question 2

Multiple Choice

Portfolio management frameworks (e.g., BCG matrix) share which of the following characteristics?

• A) Grid dimensions are based on external environments and internal capabilities/market positions.
• B) Businesses are plotted on a 3-dimensional grid.
• C) Position in the matrix suggests a need for, or ability to share, infrastructures or build on core competences.
• D) They are most helpful in helping businesses develop types of competitive advantage.

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Definitions:

Futures Markets

Financial markets that facilitate the buying and selling of future contracts, which are agreements to buy or sell an asset at a future date at a price specified today.

Financial Contracts

Agreements between parties to conduct a financial transaction according to specified terms.

Synthetic Stock Positions

Financial derivative strategies that mimic the outcomes of holding an actual stock, using instruments such as options.

Market Timers

Individuals or entities that attempt to predict market movements and make buying or selling decisions based on those predictions.