You Should Never Ask the Owners of a Business Where

question 41

True/False

You should never ask the owners of a business where you are a customer whether they are interested in selling their business.

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Definitions:

Active Portfolio

An Active Portfolio is a collection of investments actively managed by fund managers or investors, regularly making buy, sell, and hold decisions in an attempt to outperform the benchmark index.

Abnormal Returns

Returns on a stock or portfolio that differ significantly from the expected return based on the market or certain benchmarks.

Mean-Variance Theory

A financial model that analyzes investments by examining their expected returns (mean) against their risk (variance) to select the most efficient portfolio.