Given That a Firm's Profit Is High Enough for It

question 84

Multiple Choice

Given that a firm's profit is high enough for it to remain in business, a sales pricing objective may be to _________, which will in turn lead to increases in market share and profit.

• A)decrease market share and invest in additional research and development of new products
• B)increase sales revenue while decreasing market share
• C)increase sales revenue
• D)increase research and development financing
• E)continue with previous policies that seem to be working

---

Definitions:

Global Minimum Variance Portfolio

A portfolio construction strategy aimed at minimizing the volatility of returns by selecting a combination of investments that as a whole have the lowest possible risk.

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, often used to quantify the risk associated with a particular investment or portfolio.

Optimal Risky Portfolio

According to modern portfolio theory, this portfolio provides the maximum expected return for a specific risk level or minimizes the risk for a set expected return.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, commonly used in finance to quantify the risk associated with a given investment.