Joyce Is Working Out a Five-Year Strategy for the Company

question 157

Multiple Choice

Joyce is working out a five-year strategy for the company based on the direction she feels it should be headed. What is Joyce's role in the company?

• A)leader  
• B)manager  
• C)supervisor  
• D)worker

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Definitions:

CAPM

Capital Asset Pricing Model; a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.

Arbitrage Pricing Theory

A financial model that estimates the price of securities by considering the relationship between their expected returns and macroeconomic factors.

Single Market Index

An index that measures the performance of a specific market segment or region.

Nonsystematic Risk

This type of risk is unique to a specific company or industry and can be reduced through diversification.