When Pepsi-Co Recognized There Was a Need for Take-Home Bottled-Water

question 197

Multiple Choice

When Pepsi-Co recognized there was a need for take-home bottled-water dispensing service in India, where none existed before, they proceeded to undertake a

• A)product invention
• B)product adaptation
• C)product customization
• D)product extension

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Definitions:

Portfolio Effect

The impact of diversifying investments across different assets, which can reduce risk without proportionately lowering expected returns.

Investment Decisions

Choices made by individuals or firms regarding the allocation of resources to different assets or projects with the expectation of earning a return.

Correlation

A numerical indicator that captures how much two variables move in tandem, showing both how strong their linkage is and in what direction it lies.

Risk-adjusted Discount Rates

Discount rates that are adjusted to reflect the risk of an investment, used in calculating the present value of expected future cash flows.