Which of the Following Entails Reducing the Business Portfolio by Eliminating

question 65

Multiple Choice

Which of the following entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy?

• A) Market segmentation
• B) The BCG approach
• C) Product-line extension
• D) Downsizing
• E) Market redesign

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Definitions:

Market Index

A statistical measure that represents the overall performance of a selected set of stocks, designed to reflect the movements and trends of the market or a specific sector.

Active Portfolio

An investment portfolio managed with the intention to outperform the market by selecting and managing investments through active decision-making.

Treynor-Black Model

The Treynor-Black Model is a portfolio optimization method that combines actively selected securities with a passively managed market portfolio for better risk-adjusted returns.

Macroeconomic Risks

Risks that arise from changes in economic policies, political stability, or other macroeconomic factors that can impact the overall market.