Which of the Following Is the Most Likely Reason Why

question 84

Multiple Choice

Which of the following is the most likely reason why the failure rate of new executives is high?

• A)Better techniques of developing executives are needed.
• B)Accelerated diversity programs place people in executive positions before they are ready for the responsibility.
• C)Most people are unable to balance the work/life demands of upper-level management.
• D)People are either born with the ability to be executives or not.

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Definitions:

Market Return

The total return on investment, including dividends and capital gains, from holding a market portfolio.

Nondiversifiable Risk

A type of risk that affects all investments across the market and cannot be eliminated through diversification.

Diversifiable Risk

A type of investment risk that can be reduced or eliminated in a portfolio through diversification, as it is not correlated with market movements.

Risk Premium

The extra return expected by an investor for holding a risky asset, over and above the risk-free rate.