A Concern to Be Considered About a Project Management Information

question 44

Multiple Choice

A concern to be considered about a project management information system is the _______. Project managers might believe that, because they have a powerful project management information system, they can manage and accomplish more than is actually feasible. Managers might think that, although a project is slipping, the system will be able to figure out a way to get it back on track. Just because the system says everything is all right doesn't necessarily make it so.

• A) false sense of security
• B) information overload
• C) distraction
• D) overreliance on information system

---

Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, often calculated using models like the Capital Asset Pricing Model (CAPM).

Market Risk Premium

Slope of the Security Market Line; the difference between the expected return on a market portfolio and the risk-free rate.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and can finance its operations.

Risk-Free Rate

The return on an investment with zero risk, typically associated with government bonds.