Methods of Divestiture Include the Sale of a Product Line

question 5

True/False

Methods of divestiture include the sale of a product line to another firm, the sale of a unit to existing management, spin-offs, and the liquidation of assets.

---

Definitions:

Denominated

Indicates the currency in which a financial transaction is specified or an investment is made.

Expected Return

The anticipated average return on an investment under normal conditions, taking into account both the probability of each outcome and the return of each outcome.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.

Covariance

A measure used in statistics to determine how two variables move together, indicating the degree to which they are correlated.