Which of the Following Questions Ought to Be Used to Distinguish

question 27

Multiple Choice

Which of the following questions ought to be used to distinguish a winning strategy from a so-so or flawed strategy?

• A) Does the strategy contain a sufficient number of emergent and/or reactive elements?
• B) Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner?
• C) Is the strategy built on a company's weakness or does it require resources that are deficient in the company?
• D) Is the strategy well matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance?
• E) Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

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Definitions:

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio compared to the market as a whole, indicating how sensitive the portfolio is to market movements.

Diversified Portfolio

An investment strategy that spreads investments across various asset classes to reduce risk and potential volatility.

Replacement Stock

Stock issued in exchange for an existing stock, often used in stock splits, mergers, or acquisitions to adjust shareholder holdings without changing overall equity.

Expected Return

The weighted average of all possible returns for an investment, where each outcome is weighted by its likelihood of occurrence.