General Motors Decided _________ Was a Better Strategy Because ____________

question 59

Multiple Choice

General Motors decided _________ was a better strategy because ____________.

• A)insourcing; IT specialty companies can deliver technology that is cheaper
• B)insourcing; GM can deliver technology that is better aligned to its unique needs
• C)outsourcing; IT specialty companies can deliver technology that is cheaper
• D)outsourcing; GM can deliver technology that is better aligned to its unique needs

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Definitions:

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by government bonds.

Annualized Return

A rate of return that standardizes an investment's earnings to a one-year period, making comparison with other investments easier.

Holding Period

The length of time an investment is held by an investor before being sold.

Riskless Arbitrage

A financial strategy that aims to profit from discrepancies in the price of identical or similar financial instruments on different markets or in different forms without risk.