The Balanced Scorecard System Requires Management to Consider ________

question 70

Multiple Choice

The balanced scorecard system requires management to consider ________.

• A) both financial and operational performance measures
• B) only performance measures
• C) only leading indicators
• D) only financial and customer perspectives

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Definitions:

Treynor Measure

A performance metric for determining how much excess return was generated for each unit of risk taken by a portfolio.

Beta

A measure of a stock's volatility in relation to the overall market; indicates the stock's risk compared to that of the average market portfolio.

Jensen's Measure

A metric used to evaluate the performance of an investment portfolio, considering both the risk-adjusted return and the portfolio's expected return based on market risk.

Market Portfolio

A theoretical bundle of investments that represents a segment of the overall market, typically used in the Capital Asset Pricing Model.