An Analysis of the Industry's Technological Improvements Can Help Managers

question 39

Multiple Choice

An analysis of the industry's technological improvements can help managers better identify which of these trends are occurring within a particular industry?

• A)Major efficiency gains.
• B)Reductions in overhead
• C)Lower production costs
• D)All of the above

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Definitions:

Correlation

The tendency of two variables to move together.

Two-asset Portfolio

It is a financial portfolio comprising two different assets, aimed at diversifying investment risk.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

CAPM

Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the market.