<em>The correct answer is:</em> D. Life-cycle enhancement
Explanation:
When a company wants to optimize physical locations for all activities in the value chain, it must manage all elements of the value chain to improve processes and increase the efficiency and effectiveness of the value chain. Therefore, some strategic advantages for this decision include the improvement of organizational performance, which would optimize the stages of the value chain, reducing waste, and the failures of the process, which would generate cost reduction. Compliance with legislation would also decrease political risks, being a significant strategic advantage for improving the value chain.
Therefore, the life-cycle enhancement may not constitute a strategic advantage, because this process requires greater capacity for the company to manage and monitor variable resources during the enhancement life cycle, which can generate greater difficulty in managing the value chain. and higher spending.
A stock's contribution to the market risk of a well-diversified portfolio is called SYSTEMATIC risk.
a) TRUE. If beta of stock A = 1, stock A will move in the same direction as the market, by about the same amount.
b) FALSE. Higher beta stocks are expected to have higher required returns, as investors expect to receive higher compensation due to higher risk level of high beta stocks
c) TRUE. Market portfolio has beta = 1. Any stocks that have beta > 1 will be more volatile than the market.
The reason why he didn't make the decision was because of the fact that Jamison is being influenced by the substitution effect by which if he were to chose the decision of reducing his hours, the opportunity cost of choosing the decision is likely to be high.<span />
The stock rate of return is a measure of the profitability of the shares over a period of time. There are a number of measures of performance of the shares, which include their own characteristics and benefits during a profitability analysis. The period during which stock returns are measured is chosen based on personal preferences, but portfolio managers usually measure it on a daily, weekly, monthly and annual basis.
