Once an Entrepreneur Has Determined That a Business Appears to Be

question 45

Multiple Choice

Once an entrepreneur has determined that a business appears to be feasible, pro forma financials will be built as part of a

• A) feasibility study.
• B) job design strategy.
• C) business process map.
• D) gross  profit analysis.
• E) complete  business plan.

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Definitions:

Market Value Weighted-Average Beta

A calculation that averages the betas of all stocks in a portfolio, weighted by their market value.

Market Index

A statistical measure that tracks the performance of a basket of specific stocks to represent a particular market or sector.

Beta

A measure of the volatility, or systemic risk, of a security or a portfolio compared to the market as a whole.

Systematic-Risk Event

An event that affects all securities in the financial market and cannot be mitigated through diversification.