Oakland Athletics Over the Past Decade, Professional Baseball Has Evolved into an into an Increasingly

question 67

Multiple Choice

Oakland Athletics
Over the past decade, professional baseball has evolved into an increasingly dysfunctional, sharply divided game of big-time haves and small-time have-nots. A few big market teams like the New York Yankees and the Los Angeles Dodgers leverage huge television contracts to acquire top talent at top salaries. Clubs in smaller cities with meager budgets make do with what's left. This trend has not proven true for the Oakland Athletics. From 2000 to
2006, the A's finished first in their division 5 times and second 2 times, all the while spending about one­third of the money as the Yankees on player payroll. The team's success as a small­market team is credited to its general manager Billy Beane. Billy Beane is a man who knows how to do more with less. He relentlessly exploits market mismatches by mining data his rivals ignore and by scooping up assets that others have undervalued, an approach made famous in Michael Lewis' Moneyball. He realizes that every player must be evaluated according to his long- term economic impact on the team. People who work with Beane describe him as "monomaniacal, ardent, and controlling."
-Refer to Oakland Athletics. Beane operates within windows of opportunity? that's all he can afford. Because compensation trails performance, he must find players on the rise, guys who haven't caught fire yet but who could. His ability to see potential players creates a positive image for the baseball club's future. Beane's ability to provide direction for the future means that he could be classified as a(n) ______ .

• A) entrepreneur
• B) visionary leader
• C) transactional leader
• D) leader ombudsmen
• E) team leader

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Definitions:

Market Risk

Market risk, also known as systematic risk, refers to the potential for investors to experience losses due to factors that affect the overall performance of the financial markets.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates that the stock's price is more volatile than the market.

Volatile

Refers to the degree of variation in the price of a financial instrument over a period of time, indicating the level of risk associated with it.

Standard Deviation

A statistical measure that represents the dispersion or variability of a dataset relative to its mean.