Describe the Three Basic Alternatives of Ownership of Assets and Facilities

question 59

Essay

Describe the three basic alternatives of ownership of assets and facilities in an outsourcing contract.

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Definitions:

Systematic Risk

The risk inherent to the entire market or a segment thereof, also known as market risk, which cannot be eliminated through diversification.

Stock Market

A public market for buying, selling, and trading stocks (shares) of publicly-held companies.

Alpha

A measure of the excess return of an investment relative to the return of a benchmark index.

Actual Return

The real gain or loss experienced on an investment, typically expressed as a percentage of the investment's initial cost.