An SBU with a Large Market Share of a Low-Growth

question 8

Multiple Choice

An SBU with a large market share of a low-growth market is a ________.

• A)star
• B)dog
• C)cash cow
• D)question mark
• E)low-cost leader

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Definitions:

Expected Return

The anticipated return on an investment, calculated as the weighted average of all possible returns, weighted by the likelihood of each outcome.

Diversification

A risk management strategy that involves allocating portfolio resources or capital to a variety of investments to reduce exposure to any single asset or risk.

Diversification

The strategy of allocating investments among various financial assets or sectors to reduce risk.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.