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In Terms of Time Horizon, There Are Three Options for Organizational

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Essay

In terms of time horizon, there are three options for organizational control focus. One is feedback control. Name the other two and briefly compare each of the three.


Definitions:

Alpha/Beta

Measures in finance; Alpha represents the strategy's returns above the benchmark, whereas Beta indicates the volatility relative to the market.

Sharpe Measure

A measure of the excess return (or risk premium) per unit of risk in an investment asset or a trading strategy, calculated as the difference between the asset's returns and the risk-free rate, divided by the asset's standard deviation.

Forecasting Ability

The capability to predict future trends, prices, or outcomes based on historical data, trends, and analysis.

Tracking Error

The difference between the return on a managed portfolio and that of a benchmark portfolio against which the manager is evaluated.

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