The BCG Matrix Allows Portfolios of Products to Be Depicted

question 61

Multiple Choice

The BCG matrix allows portfolios of products to be depicted on a 2 x 2 box, the axes of which are based on which of the following?

• A)Share price and turnover
• B)Relative market share and price positioning
• C)Sales and profit margins per unit
• D)Market growth rate and relative market share

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Definitions:

Directional

In investing, this term refers to strategies or trades based on the anticipated direction of the market or an asset's price movement.

Arbitrage

A zero-risk, zero-net investment strategy that still generates profits.

Transparency

In finance, it refers to the extent to which investors have ready access to required financial information about a company, market, or security.

Investment Strategy

A plan designed to guide an investor's selection of an investment portfolio, typically based on goals, risk tolerance, and future needs for capital.