The ____ the Correlation in Project Returns Is Over Time

question 6

Multiple Choice

The ____ the correlation in project returns is over time, the ____ will be the project portfolio risk as measured by the portfolio variance.

• A) lower; lower
• B) higher; lower
• C) lower; higher
• D) none of the above

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Definitions:

Substitutability

The degree to which one product or service can be replaced by another to satisfy the same need or want.

Comparative Advantage

Comparative advantage refers to the ability of an entity to produce a good or service at a lower opportunity cost compared to others.

Production

The process of creating goods or services by combining various resources like labor, materials, and technology.

Feasible Terms

Conditions or criteria that can be realistically achieved or met in a particular context or agreement.