Portfolio Analysis Is a Useful and Powerful Tool,but Firms Often

question 46

Multiple Choice

Portfolio analysis is a useful and powerful tool,but firms often need to take a more balanced approach because:

• A) measures are difficult to obtain and project.
• B) classifications can become self-fulfilling prophecies and strengths and weaknesses are distorted.
• C) substitute approaches can offer different insights.
• D) All of these.
• E) None of these.

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Definitions:

Crowdfunding

The practice of funding a project or venture by raising small amounts of money from a large number of people, typically through the Internet.

Backer

An individual or entity that supports a project, initiative, or company financially, often through crowdfunding platforms.

Loan

A sum of money that is borrowed, usually from a financial institution, and is expected to be paid back with interest.

Crowdsourcing

The practice of obtaining information, ideas, or content by soliciting contributions from a large group of people, especially from an online community.