Value Activities Can Best Be Defined As

question 58

Multiple Choice

Value activities can best be defined as:

• A)Activities that firms in the industry must perform to improve a product.
• B)Activities that firms in the industry must perform in the process of converting raw material to final product, including customer service.
• C)Activities that firms in the industry must perform in the process of closing down a product line, including customer service.
• D)Activities that firms in the industry must perform to consider ways of marketing a product.
• E)Activities that firms in the industry must perform in the process of considering new products, including customer service.

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Definitions:

Nonsystematic Standard Deviation

A measure of variance in a portfolio's total returns attributable to factors specific to individual securities, as opposed to the market.

Equally-Weighted Portfolio

An equally-weighted portfolio is an investment strategy that gives the same weight, or importance, to each asset in the portfolio, regardless of the size or market value of the companies.

Securities

Securities that signify either an equity stake in a corporation that is publicly traded, a debt interest in a company or government entity, or ownership rights as delineated by an option.

HML Beta

A measure used in finance to assess the sensitivity of an asset or portfolio to a value factor, defined as high minus low book-to-market stocks.