Viewing Strategy as a Portfolio of Options Rather Than a Portfolio

question 28

Multiple Choice

Viewing strategy as a portfolio of options rather than a portfolio of investments,relies upon the rationale that:

• A)Uncertainty means that flexibility is valuable
• B)Committing to a long-term program of investment can be disastrous if circumstances change
• C)Most investment projects can be divided into a sequence of stages where,at any point of time,it is only necessary to decide the next stage
• D)All of the above

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Definitions:

Minimum Assets

The least amount of assets required by a regulatory body or financial institution for a company to operate or qualify for financing.

Revenue Test

A criterion used to determine the effectiveness of a business's ability to generate income.

Total Amount

The complete sum or quantity calculated by adding together all the individual components or values.

Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations.