Which One of the Following Do You Think Is Not

question 50

Multiple Choice

Which one of the following do you think is not a reason why it is important for businesses to study technology trends as part of the PEST analysis?

• A) Technological innovation can provide new ways of distributing products.
• B) New technologies create new market opportunities.
• C) New technology can reduce costs.
• D) Technological innovation leads to discontinuous change in industries.
• E) Technological innovation has to be effectively managed in an organisation.

---

Definitions:

Perfect Timing

Perfect timing refers to the ideal moment to buy or sell a security in order to achieve the highest possible gains based on market conditions.

Market Portfolio

A theoretical portfolio of investments that contains all available assets in the market, weighted by market capitalization.

Call Option

The right to buy an asset at a specified exercise price on or before a specified expiration date.

Nonsystematic Variance

The portion of an investment's variance that is attributable to factors specific to its issuer and can be eliminated through diversification.