The Most Challenging Part of Applying the Product Life Cycle

question 4

True/False

The most challenging part of applying the product life cycle concept is that managers do not know exactly how long each stage of the cycle will last.

---

Definitions:

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, relative to the volatility of those excess returns.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, traditionally associated with government bonds or bills.

Information Ratio

A ratio used to measure the return of an investment relative to the risk taken, comparing the asset's returns beyond the benchmark to the volatility of those returns.

Risk-Free Return

The expected return from an investment that carries no risk of losing money, usually linked to government securities.