Two Information Technology Developments That Seem to Be Driving Current

question 68

Multiple Choice

Two information technology developments that seem to be driving current changes in managerial communication are networked computer systems and ________.

• A) wireless capabilities
• B) the World Wide Web
• C) ubiquitous computing capabilities
• D) extranets

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Definitions:

Capital Asset Pricing Model (CAPM)

Equation of the Security Market Line showing the relationship between expected return and beta.

Reward To Risk Ratio

A measure that evaluates the anticipated gains from an investment against the level of risk assumed to achieve these gains.

Security Market Line

A graphical representation of the expected return of all risky marketable securities as a function of their beta, or systemic risk, according to the capital asset pricing model.

Diversifiable Risk

Relates to the risk that can be reduced or eliminated from a portfolio by holding a variety of investments.