Firms That Seek to Scale Down Their Operations Are Following

question 48

Multiple Choice

Firms that seek to scale down their operations are following a(n) :

• A)concentration strategy.
• B)internal growth strategy.
• C)external growth strategy.
• D)divestment strategy.
• E)diversification strategy.

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Definitions:

Dow Average

A stock market index that represents the stock performance of 30 large, publicly-owned companies based in the United States.

Four-Factor Model

An investment model that extends the three-factor model by adding momentum as a factor to account for stock performance.

Excess Returns

The return on an investment beyond the return expected from the risk level, often compared to benchmarks or risk-free returns.

Fama and French

A model developed by Eugene Fama and Kenneth French that expands on the Capital Asset Pricing Model (CAPM) by adding size risk and value risk factors to the market risk factor.