In the Assessment of the Present Strategy Based on Performance

question 3

Multiple Choice

In the assessment of the present strategy based on performance step,what indicators should one look at to have a complex comparison of performance?

• A)market share
• B)net profit
• C)return on assets
• D)accounts receivable

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Definitions:

Alpha

A measure of investment performance that indicates how an asset performs relative to a benchmark.

Overpriced

Describes an asset or security that is believed to be trading at a price higher than its intrinsic value.

Underpriced

A term used to describe a security or any financial instrument that is selling for a price believed to be below its true intrinsic value.

Well-diversified Portfolio

An investment portfolio that spreads risk by holding a wide variety of assets, potentially across different asset classes, sectors, and geographies.