CSFs and KPIs Are the Two Core Metrics Used Within

question 117

Multiple Choice

CSFs and KPIs are the two core metrics used within a business to track progress or success.What is the relationship between CSFs and KPIs?

• A)CSFs are business strategy elements where KPIs measure the progress of the CSFs.
• B)CSFs build the business environment where KPIs explain how to build the CSFs.
• C)KPIs are used first where CSFs are applied after.
• D)KPIs promote employees on their performance where CSFs demote employees based on their performance level.

---

Definitions:

Unsystematic Risk

A type of risk that is specific to a single company or industry, also known as diversifiable or idiosyncratic risk.

Historical Returns

The past financial performance of an investment, often used to predict future performance or assess risk.

Expected Returns

The average amount of profit or loss an investment is expected to generate, based on historical data.

Portfolio Weights

The percentage composition of a particular holding relative to the total investment portfolio.