If a Company Wants to Reduce Its Dependency on a Market

question 30

Multiple Choice

If a company wants to reduce its dependency on a market that is cyclical in nature,what type of merger strategy should it choose?

• A)integration
• B)assimilation
• C)diversification
• D)consolidation

Understand the concept and calculation of risk-adjusted metrics such as the Treynor measure, Sharpe measure, and Jensen's alpha.

Recognize the importance and quantitative determination of beta in evaluating portfolio performance.

Identify the impact of investing timing and method (dollar-weighted vs. time-weighted return) on overall investment performance.

Distinguish between mutual funds, hedge funds, and equity funds in terms of performance and risk characteristics.

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Definitions:

Round Off

The process of adjusting numbers to the nearest value, often used to simplify calculations by eliminating digits after a certain decimal point.

Produce Market

A location or establishment where agricultural products, especially fruits and vegetables, are sold directly to consumers.

Tangerines

A type of citrus fruit smaller than oranges with a sweet, tangy flavor.

Monetary Products

Financial products and services that involve the management, investment, transfer, or lending of money.