The Weights and Total Weighted Scores in Both a Competitive

question 51

True/False

The weights and total weighted scores in both a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) Matrix have the same meaning.

---

Definitions:

Risk Neutral

An investor who finds the level of risk irrelevant and considers only the expected return of risk prospects.

Expected Return

The weighted average of all possible returns for a given investment, based on probabilities of outcomes.

Standard Deviation

Measures the amount of variability or dispersion around an average, reflecting the risk associated with a variable’s stability in financial contexts.