Adopting a Set of "Stretch" Financial and Stretch Strategic Objectives

question 107

Multiple Choice

Adopting a set of "stretch" financial and stretch strategic objectives

• A)pushes the company to strive for lesser but adequate profitability levels, because the stretch objectives are considered unattainable.
• B)is a widely held method for creating a "scorecard" for monitoring company performance.
• C)helps convert the mission statement into meaningful company values.
• D)challenges company personnel to execute the strategy with greater enthusiasm, proficiency, and understanding.
• E)is an effective tool for pushing the company to perform at its full potential and deliver the best possible results.

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Definitions:

Portfolio Expected Return

Portfolio expected return is the weighted average of the expected returns of the assets contained within an investment portfolio.

Expected Returns

The predicted amount of profit or loss an investment is projected to generate, often based on historical data or statistical models.

Standard Deviation

A statistical measure of the dispersion or variability in a set of data points, often used to gauge the risk associated with a financial asset.

Good Economy

A state of economic health in which a nation experiences growth, low unemployment, and increasing wealth among its population.