One Disadvantage of SROI Is That

question 26

Multiple Choice

One disadvantage of SROI is that:

• A) it does not measure the financial benefit of certain programs.
• B) it cannot be used with intangible information.
• C) the analysis process is resource intensive.
• D) it provides too much information to easily filter.

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Definitions:

Market Risk

Variation on the return on a stock investment caused by things that tend to affect all stocks.

Stand-Alone Risk

The risk associated with investing in a stock that’s held by itself, outside of a portfolio. Stand-alone risk depends on the volatility of a stock’s own return rather than on the effect its inclusion has on the volatility of the return of a portfolio.

Business Risk

The potential for loss or failure in the operation of a company, often due to external and internal factors.

Financial Assets

Assets that derive value because of a contractual claim on them, such as stocks, bonds, bank deposits, and other investments.