The Approaches to Evaluating Vendor Proposals That Do Not Incorporate

question 44

Multiple Choice

The approaches to evaluating vendor proposals that do not incorporate dollar estimates of costs or benefits are known as

• A) benchmark problem and point scoring.
• B) point scoring and requirement costing.
• C) requirement costing and benchmark problem.
• D) All methods mentioned above include dollar estimates.

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Definitions:

N Risky Securities

A term referring to a collection of investments that carry a significant level of risk, where 'N' indicates the number or variety of such risky assets.

Risk Level

The potential for losing something of value, measured in the context of investment as the uncertainty regarding the return or the possibility of losing some or all of the original investment.

Capital Allocation Line

A line on a graph that shows the risk-reward ratio of different portfolios, helping investors understand their options for achieving a desired balance.

Risk-averse Investors

Investors who prefer to minimize uncertainty and potential loss in their investment choices, often opting for safer, more predictable investments.