Portfolio Management

question 246

Multiple Choice

Portfolio management:

• A) heavily emphasizes long-run profitability.
• B) is preferred over the General Electric strategic planning grid.
• C) allows a manager to compare different divisions within the company.
• D) is another name for the combined target market approach.
• E) None of the above is true.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate the economy's inflation rate.

Inflation Rate

The annual percentage increase in the general price level of goods and services, reflecting the rate at which the purchasing power of currency is eroded.

Market Basket

A fixed list of items, used to track the progress of inflation in an economy or to compare costs of living.

CPI

Refers to the Consumer Price Index, a metric that calculates the weighted average price of a selection of consumer items and services including food, medical care, and transportation.