As Your Good Friend Ponders Putting Some Structure to His/her

question 351

Multiple Choice

As your good friend ponders putting some structure to his/her graphic design business idea,which of the following do you not advise him/her to do?

• A)Prepare the non-changeable marketing plan for the next three years,including marketing analysis and marketing strategy
• B)List the work that needs to be done such as 1)computer assisted design;2)sales generation;3)accounting and bookkeeping;4)purchasing and supply ordering,and more
• C)List who will do the various jobs,including who will perform the computer work,who will keep the books,and who will go out and create sales
• D)Assign responsibility and authority to certain employees

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Definitions:

Separation Property

The property that portfolio choice can be separated into two independent tasks: (1) determination of the optimal risky portfolio, which is a purely technical problem, and (2) the personal choice of the best mix of the risky portfolio and the risk-free asset.

Risky Portfolio

An investment portfolio that contains assets with a higher degree of risk, potentially leading to higher returns or greater losses.

Complete Portfolio

The entire portfolio, including risky and risk-free assets.

Optimal Risky Portfolio

A combination of investments that yields the highest expected return for a specific level of risk.