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Refer to the Scenario Below to Answer the Following Questions

question 141

Multiple Choice

Refer to the scenario below to answer the following questions.
Innovation Variables at Lightspeed (Scenario)
Edwin Lee leads a cross-functional product development team at Lightspeed.com, a software company with employees in 10 countries around the world) The members of Edwin's team are hard-working and highly creative, but he wonders if there are ways to stimulate more innovation from the team. As the company has grown, so too has the bureaucracy. Numerous rules and policies have been introduced, and decision making has become highly centralized. This has resulted in resource limitations and tight project deadlines. Fortunately, with the use of web cams and other Internet technology, Edwin is able to hold frequent meetings with his global cross-functional team. And despite some structural limitations, the company's culture does seem to foster creative solutions. Diverse opinions are encouraged, and even the most unrealistic, ''off-the-wall'' solutions are accepted without criticism. Mistakes are treated as learning opportunities-a good thing, since there have definitely been some mistakes!
-Which structural variable that can foster innovation is present already at Lightspeed?

Definitions:

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole, with a value greater than 1 indicating higher risk and a value less than 1 indicating lower risk.

Treynor Measure

A metric for assessing the returns of an investment portfolio, adjusting for the risk taken as measured by beta.

Beta

A measure of a stock's volatility in comparison to the overall market's volatility, indicating the risk associated with investing in the stock.

Serial Correlation

The relationship between a data series and a lagged version of itself over consecutive time intervals.