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In an Attempt to Allow for More Sharing of Components

question 40

Multiple Choice

In an attempt to allow for more sharing of components, Designethic, redesigns its power tool groups into specific product families, allowing for more sharing of components. This best exemplifies a _____.


Definitions:

Beta

A rephrasing: A statistical estimate of a security's sensitivity to market movements, used to gauge its risk in comparison to the broader market.

Treynor Measure

A performance metric for determining how well an investment compensates the investor for taking a given level of market risk.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility than the market, and less than 1 indicates lower.

Comparison Universe

A benchmark or group of benchmarks used to evaluate the performance of an investment or fund.

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