An Organizational Environment with Dissimilar Elements and That Changes Fast

question 8

Multiple Choice

An organizational environment with dissimilar elements and that changes fast has

• A) Low uncertainty.
• B) Moderately low uncertainty.
• C) Moderately high uncertainty.
• D) High uncertainty.

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Definitions:

Sharpe Measure

A metric used to assess the performance of an investment by adjusting for its risk.

Excess Returns

Returns earned by an asset that exceed the risk-free rate of return, indicating the additional gain from taking on risk.

Risk-free Asset

A financial instrument that is considered to have no risk of financial loss, typically issued by a government.

Sharpe Measure

A method to evaluate the risk-adjusted return of an investment, comparing portfolio excess return to the standard deviation of the portfolio.