The Customer Perspective of the Balanced Scorecard Answers Which of the Following

question 62

Multiple Choice

The customer perspective of the balanced scorecard answers which of the following questions?

• A) How do customers see us?
• B) What must we excel at?
• C) How do we look to shareholders?
• D) Can we continue to improve and create value?

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Definitions:

Mean-variance Efficient

A portfolio that offers the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

CAPM

The Capital Asset Pricing Model is a conceptual model employed to calculate the anticipated return on an investment, taking into account both the risk associated with the investment and the time value of money.

Market Portfolio

A theoretical portfolio that includes all assets available in the market, each weighted by its market capitalization, often used in the Capital Asset Pricing Model (CAPM).

SML Relationship

The Security Market Line relationship, which represents the expected return of a security or portfolio in relation to its beta, or market risk.