Portfolio Management

question 123

Multiple Choice

Portfolio management:

• A) does not consider quantitative screening criteria such as ROI.
• B) makes sense only if a manager is interested in comparing very similar alternatives.
• C) primarily focuses on the likely long-term potential of a product-market opportunity.
• D) is too complex to be helpful except in small companies that have only one product.
• E) None of the above is true.

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Definitions:

Psychoanalytic Theory

A theory of psychology and human behavior emphasizing unconscious motives and conflicts, originally developed by Sigmund Freud.

Behavior Theory

A theory that suggests that behaviors are learned and maintained through interactions with the environment, including stimuli and reinforcements.

Psychobiological

Relating to the biological underpinnings of psychological phenomena, emphasizing the interaction between biological processes and behavior.

Humanistic

Relating to an approach in psychology that emphasizes individual worth, personal growth, and the concept of self-actualization.