An Evaluation of the General Environment

question 49

Multiple Choice

An evaluation of the general environment

• A)is done before the feasibility analysis.
• B)helps identify a trend that could be used for a possible startup idea.
• C)will clarify the unique value of the startup idea.
• D)will be the primary determinant for a possible startup idea.

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Definitions:

Diversification

The process of allocating investments across various financial assets to reduce the risk exposure of a portfolio.

One-Factor APT

The Arbitrage Pricing Theory that describes the expected return of a financial asset in relation to a single systematic risk factor.

Factor Portfolio

An investment portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes.

Unsystematic Risk

The risk associated with a specific issuer of a security, such as a company's management decisions or financial health, distinct from market-wide risks.