Any Effort to Enhance an Organization's Ethical Behavior Must Begin

question 108

Multiple Choice

Any effort to enhance an organization's ethical behavior must begin with

• A) the appointment of an ombudsman.
• B) a review of the internal environment.
• C) the development of a formalized code of ethics.
• D) a modification of the ethical codes of employees who interact with stakeholders.
• E) the support of top management.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; indicates the stock's risk compared to that of the average market portfolio.

Jensen's Measure

A metric used to evaluate the performance of an investment portfolio, considering both the risk-adjusted return and the portfolio's expected return based on market risk.

Market Portfolio

A theoretical bundle of investments that represents a segment of the overall market, typically used in the Capital Asset Pricing Model.

Sharpe Measure

A risk-adjusted performance metric that evaluates the return of an investment compared to its risk, with a higher Sharpe ratio indicating better risk-adjusted returns.