Describe Your Own Worldview

question 35

Essay

Describe your own worldview.

Grasp the significance of diversification in reducing portfolio risk and understand the distinction between diversifiable and non-diversifiable risks.

Know how the security market line represents the relationship between risk (beta) and expected return and how it aids in determining if an investment is correctly priced.

Understand how to compute the expected return on a portfolio and the role of portfolio weights.

Recognize the importance of the correlation between stocks in a portfolio and its effect on portfolio variance.

---

Definitions:

Sales Call

A prearranged meeting or phone conversation with a potential client to discuss a product or service with the intention of making a sale.

Purchasing Manager

An individual responsible for sourcing goods and services for a company, negotiating contracts, and managing supplier relationships.

SPIN Approach

A sales technique that focuses on understanding the Situation, Problem, Implication, and Need-payoff to effectively sell a product or service.

Customer Benefit Approach

A sales strategy that focuses on emphasizing the advantages and positive outcomes a customer will gain from a product or service.