The Development of Portfolio Planning Techniques at the End of the 1960s

question 48

Multiple Choice

The development of portfolio planning techniques at the end of the 1960s was initiated by:

• A)The Rand Corporation
• B)General Electric
• C)Michael Porter
• D)Peter Drucker

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often quoted as an annual rate, and is typically deductible for tax purposes.

Sinking Fund

A reserve fund established by a company to repay debt or replace a preferred stock at a future date through periodic payments.

Bond Indenture

A legal contract between the bond issuer and the bondholders detailing the terms of the bond, including interest rate, maturity date, and other conditions.

Yield to Maturity

The expected full yield on a bond when held until its maturity period.