One Advantage of Developing Technology Within One's Own Company Is

question 59

Multiple Choice

One advantage of developing technology within one's own company is the

• A)optimal utilization of the company's resources.
• B)cost effectiveness due to material innovations.
• C)proprietary nature of the technology within the organization.
• D)reduced requirement to hire additional staff.
• E)ability to take plenty of time to develop a product right.

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Definitions:

Geometric Average Return

The compound average rate of return over a period, calculated by multiplying n-roots of the product of returns and subtracting one, useful for comparing investments.

Treynor Measure

A formula used to measure the returns earned in excess of that which could have been earned on a risk-free investment per unit of market risk.

Standard Deviations

A statistical measure that quantifies the amount of variation or dispersion of a set of data values, often used in finance to measure the volatility of an asset's returns.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 means the stock is more volatile than the market, while less than 1 means less volatile.