Productivity Benefits from Using EC Are Difficult to Measure Because

question 62

Multiple Choice

Productivity benefits from using EC are difficult to measure because

• A) the payoffs are too short.
• B) there is no time lag in EC gains.
• C) EC gains in certain areas of the company may be offset by losses in other areas.
• D) qualitative benefits do not count.

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Definitions:

Risk-Free Rate

The estimated yield from an investment that carries no risk, often illustrated by government bond yields.

High Water Mark

The previous value of a portfolio that must be reattained before a hedge fund can charge incentive fees.

Incentive Fees

Fees paid to a fund manager based on the performance of the fund, designed to align the interests of the manager with those of the investors.

Portfolio Value

The total worth of all the financial assets held in an investment portfolio.