Portfolio Management Involves Making Decisions in Order to

question 28

Multiple Choice

Portfolio management involves making decisions in order to

• A)buy low and sell high.
• B)maximize risk and return.
• C)accept risk.
• D)own stocks in bear markets.
• E)meet your investment needs and objectives.

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Definitions:

Operating Cash Flow

The cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Cash Expenses

These are expenses that require an immediate outlay of cash by the business.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, a fundamental concept in economics and financial decision-making.

Underground Storage

Facilities used for storing various substances below the earth’s surface, often pertaining to fuel and hazardous materials.