Identify the Incorrect Statement Concerning Alternative Portfolio Models

question 18

Multiple Choice

Identify the incorrect statement concerning alternative portfolio models.

• A)They are more useful for evaluating potential new product markets.
• B)They are multifactor models and are more detailed than the simple growth-share model.
• C)They provide more strategic guidance concerning the appropriate allocation of resources across businesses.
• D)They provide the best measures when managers must evaluate different industries on the same set of factors.

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Definitions:

360-Day Year

A financial calculation convention using a simplified year of 360 days to facilitate easier interest calculations.

Exact Interest

A method of calculating interest based on a 365-day year or actual number of days in a loan or investment period, providing a precise interest calculation.

365-Day Year

A conventional method of calculating interest based on a 365-day year, often used in financial calculations.

Estimate Interest

An approximation of the interest amount over a certain period based on a given rate.