Which of the Following Statements About What Happened at General

question 186

Multiple Choice

Which of the following statements about what happened at General Electric (GE) during the last decade is true?

• A)GE adopted a market niche strategy, which allowed it to accept the fact that it was not #1 or #2 in each industry in which it was involved.
• B)GE added 15,000 employees and added several marketing manager positions.
• C)Jack Welch was focused on delayering the company, as it had too many managers.
• D)GE vowed to be loyal to its employees and do whatever it could to maintain job security.

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Definitions:

Index Model

A model that describes the relationship between the returns of a stock and the returns of a market index.

Covariance

A measure of the degree to which two variables move in relation to each other, with a positive covariance indicating that they tend to move in the same direction.

Standard Deviation

A statistical measure that represents the dispersion or variability of a set of data points, often used in finance to gauge the volatility of an investment's return.

Security Characteristic Line

A line used in finance to represent the linear relationship between the returns of a stock and the returns of the market.