Which of the Following Is a Limitation of the Life

question 34

Multiple Choice

Which of the following is a limitation of the life cycle approach to security analysis?

• A) It focuses on sales rather than stock prices.
• B) It focuses on the past more than the present.
• C) It does not consider the risk in the different cycles.
• D) It does not consider quantitative factors.

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Definitions:

Contrast Error

A type of appraisal or judgment bias where the evaluation of one person is unduly influenced by the comparison with another that has recently been appraised.

Problem-Solving Approach

A methodical process of identifying a problem, brainstorming solutions, and implementing the most effective resolution.

Feedback

Information provided regarding aspects of one’s performance or understanding, which can be used as a basis for improvement.

Halo Error

A bias in performance appraisals where an evaluator's overall impression of an individual, positive or negative, influences the assessment of specific traits or behaviors.