Which of the Following Is a Goal of a Portfolio

question 20

Multiple Choice

Which of the following is a goal of a portfolio approach to managing IS projects?

• A) implement only low risk IS systems
• B) implement only IS systems that can offer a high business return
• C) balance the risks and returns of IS projects
• D) avoid implementing any high risk IS systems

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Definitions:

Purchasing Power Parity

A theory that states the exchange rates between two currencies are in equilibrium when their purchasing power is the same in both countries.

Foreign Exchange Market

A global marketplace for exchanging national currencies against one another, fundamental for international trade and investment.

Relative PPP

Stands for Relative Purchasing Power Parity, a theory that suggests that in the long term, exchange rates should adjust so that similar goods cost the same in different countries.

UIP

Uncovered Interest Parity, a financial theory stating that the difference in interest rates between two countries will equal the expected change in exchange rates between their currencies.