Pacific Tourism Is an Agency That Offers Special Holiday Packages

question 11

Multiple Choice

Pacific Tourism is an agency that offers special holiday packages in the Pacific region. Every year, as an incentive, the most efficient and effective manager in the network gets an all-expenses-paid trip to one of Oceania's islands. Which manager is most likely to meet these requirements?

• A)Norris, who chooses the right goals to pursue and spends more than he needs on resources
• B)Kato, who chooses the right goals to pursue and makes clever use of resources to achieve them
• C)Don, who chooses the right goals to pursue and displays an overly rigid approach to planning
• D)Bai, who chooses unrealistic goals and tries hard to succeed
• E)Leonard, who chooses appropriate goals, but is slow in decision making

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Definitions:

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Deltas

In options trading, deltas measure the rate of change of the option's price relative to a one-unit change in the price of the underlying asset, indicating how the price of the option is expected to move.

Portfolio Hedge Ratios

Ratios used to determine the appropriate amount of hedging needed to minimize risk in an investment portfolio, often through derivatives like options or futures.

Dynamic Hedging

A strategy that involves periodically adjusting the quantities of instruments used in a portfolio to hedge against risk as market conditions change.