1.Why the limitations that have caused some companiesto reduce their use of portfilio analysis is "Naively following the prescriptions of a portfolio model may actually reduce corporate profitsif they are used inappropriately"?

1.Why the limitations that have caused some companiesto reduce their use of portfilio analysis is "Naively following the prescriptions of a portfolio model may actually reduce corporate profitsif they are used inappropriately"?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter14: Data Mining

Section14.2: Classification Methods

Problem 7P

See similar textbooks

Related questions

Q: What is a market failure? a) Uncertain and unstable movements in the price of a stock. b) A…

A: Market failure can be defined as the inefficient and uneconomical distribution of goods and services…

Q: Which operational risk management approach gives financial institutions leeway to develop a…

A: The process of locating, evaluating, and mitigating hazards that result from routine corporate…

Q: a. you cannot expect to make abnormal returns by trading on private information b. you can…

A: The efficient-market hypothesis (EMH) reflects that the financial markets are “informationally…

Q: This type of analysis demonstrate the impact of small change in price on profit

A: Disclaimer: "Since you have asked multiple questions, we will solve the first question for you. If…

Q: Why might blindly trusting ABC analysis be risky?

A: ABC analysis - It is an approach for the classification of inventory items based on their…

Q: Somet Health Insurance Company wants to sell a health insurance product for $700 per month. There is…

A: 1. Adverse selection refers to the phenomenon where people with higher health risks and costs are…

Q: Describe 5 fundamental principles of IESBA code of ethics

A: IESBA is an organization that sets an international professional code of conduct for accountants.…

Q: 5. Evaluate and explain the following statements: a. The market system is a profit-and-loss system.…

A: A market system is a collection of buyers, sellers, and other participants who come together to…

Q: Choose the best answer The post-earnings drift is inconsistent with I The weak form efficient…

A: The post earning drift is inconsistent with :- The weak from efficient market hypothesis so, option…

Q: Managers explain and voluntarily disclose the forecasted financial information to the external…

A: The practice of managers disclosing financial projections to external financial consumers has become…

Q: A Marketing Information System consists of at least four (4) elements: internal data/records,…

A: A promoting data framework is a proceeding and communicating design of individuals, gear and systems…

Q: true or false ? subject :Sales Management 5. Vertical audit does not single out selected elements…

A: Sales management plays an essential role in controlling selling activities by measuring the…

Q: The second essential purpose for creating a business plan is to guide the operation of the company…

A: A written text that carefully elucidates every feature of a new corporate venture Definition. -…

Q: How can marketing analytics help businesses make data-driven decisions?

A: Marketing analytics refers to the practice of measuring, managing, and analyzing data related to…

Q: 2-6. What is business portfolio analysis?

A: Business analysis- It is a professional discipline of analysing business needs and determining…

Q: Ethical Considerations. You are preparing apresentation for your company’s investors. When…

A: Pessimistic projections can be stated as the propensity of expecting the bad or worst scenario in…

Q: 1. The process of deciding which markets to invest in and pursuing is market selection. One of the…

A: The process of selecting the people from the entire market those will be subjected to different…

Q: You are requested to select a sales organization which needs an Online Shopping app for Ecommerce…

A: Business information systems is the aspect of business management that deals with the application of…

Q: Explain Portfolio analysis does, however, have some very real limitations that have caused some…

A: Portfolio analysis is a common fact in a volatile business setting because companies usually carry…

Q: Explain Korey's model that consist of three discrete major phases: (1) preliminary analysis phase,…

A: Jexzy korey- krzeczowski is modern theorist and writer, he explained about a model of strategic…

Q: You have been hired recently by a large bank in its credit cardmarketing division. The bank has…

A: The use of a variety of promotional tools is essential when launching a new product in the market…

Q: The first step in financial planning is: 1-historical trending 2- creating a new cycle…

A: Financial planning is preparing financially for future mishaps to avoid inconveniences due to lack…

Q: Categorize the situation as primarily indicating 1 - an incentive to commit fraud 2 - an…

A: Absence of safety (eg, no PC against infection programming introduced, no reinforcements, utilizing…

Q: For Clear Segment (CS) company TAM is 500K with the Premium Segment being 20% of the market, the…

A: The Total Addressable Market (TAM), also known as the total available market, is the overall revenue…

Q: Somet Health Insurance Company wants to sell a health insurance product for $700 per month. There is…

A: INTRODUCTION - Health insurance is a mechanism that provides financial protection against…

Q: What is Management Discussion and Analysis. how does it helps the investors in their decision making…

A: One of the most important components of management is the decision-making process. Proper…

Q: As a young Graduate who has been employed by Kyekyewere Limited who operates four different types of…

A: A) Cash cow, star, question mark, and four different divisions represented in the BCG matrix. The…

Q: To find the net present values of future cash flows for six different discounted rate of interest,…

A: The financial analysis explains the various trends in economic and business activities. It evaluate…

Q: The use of ratios and trends to assess the performance of a company is called:a. Business…

A: Ratio analysis is also called Financial analysis. use of ratios and trends to assess performance…

Q: What would be a detailed Prject Milstones for a business that wants to make food and sell them…

A: For any business that want to enter the target market and than want to expand themselves with in…

Q: Why does Portfolio analysis is Its value-laden terms such as cash cow and dog can lead to…

A: Value laden terms used to undermine the importance of a particular approach or alternative…

Concept explainers

Cash Outflow

The term "cash flow" basically means the flow of money in and out of business. The cash flow usually takes place from operational, investing, and financing activities. The cash flow normally denotes the amount of cash that is transferred either into the business as positive cash flows or out of business as expenses with regards to operating, investing, and financing activities.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.

Similar questions

2-6. What is business portfolio analysis?
Categorize the situation as primarily indicating 1 - an incentive to commit fraud 2 - an opportunity to commit fraud 3- a rationalization for committing fraud state the reasoning behind the category you choose Scenario: There was intense pressure to keep the corporation's stock from declining further. This pressure came from investors, analysts, and the CEO, whose financial well-being was significantly dependent on the corporation's stock price
ADVERSE SELECTIONSomet Health Insurance Company wants to sell a health insurance product for $700 permonth. There is no requirement for healthy people to have insurance coverage. Thecompany conducts a survey to see how different populations respond to the proposed cost.People with no illnesses and disabilities, generally the young and healthy, respond that theydo not spend $700 on healthcare in an entire year, and most feel they would not waste somuch money on premiums when the chance of needing surgery or expensive healthcaretreatments is so small. However, older, sicker people think that $700 per month is a greatdeal, as most of them spend far in excess of this amount on healthcare. It seems like agreat deal for them.1. If the company offers this product, how will adverse selection affect it?
V . How can marketing analytics help businesses make data-driven decisions?
6 For Clear Segment (CS) company TAM is 500K with the Premium Segment being 20% of themarket, the Midsegment being 25%, and the Budget Segment 55% of the market.The premium version of CS’s offering is sold for $1000 with a 60% UCM; the middle versionis sold for $600 with a 35% margin, and the budget version is sold for $300 with a 20% margin. Calculate the market sizes, Product UCMs, and possible contributions of eachsegment.
As a young Graduate who has been employed by Kyekyewere Limited who operates four different types of Businesses in four different industries as follows:a) Cash Cowb) Starc) Question Mark / Problem child andd) DogsWith the knowledge skills and competencies that you have acquired as a Graduate who studied Management of Small and Medium Enterprise Advise Management about these Investment Portfolios in the various industry (s). Your advice should cover the followinga) Explain to Management what Cash cow, Star , Question mark and Dogs industries represent.b) Advise Management on which firm(s) demand further investment and why? c) Advise Management on which firm(s) to close down and why?
Somet Health Insurance Company wants to sell a health insurance product for $700 permonth. There is no requirement for healthy people to have insurance coverage. Thecompany conducts a survey to see how different populations respond to the proposed cost.People with no illnesses and disabilities, generally the young and healthy, respond that theydo not spend $700 on healthcare in an entire year, and most feel they would not waste somuch money on premiums when the chance of needing surgery or expensive healthcaretreatments is so small. However, older, sicker people think that $700 per month is a greatdeal, as most of them spend far in excess of this amount on healthcare. It seems like agreat deal for them. What will happen to the costs of the health insurance if only the older, sicker peopleenroll?
You have been hired recently by a large bank in its credit cardmarketing division. The bank has relationships with a large number ofcolleges and prints a wide variety of credit cards featuring college logos,images, and the like. You have been asked to oversee theimplementation of a new program targeting first-year college studentsat the schools with which the bank has a relationship. The bank hasalready purchased the names and home addresses of the incomingclass. You have been told that no credit checks will be required for thesecards as long as the student is over 18 years of age. The bank plans afirst-day-of-school marketing blitz that includes free hats, T-shirts, andbook promotions, as well as free pizza, if the students simply fill out anapplication. Do you think it is a good idea to target this program tothese new students?
true or false ? subject :Sales Management 5. Vertical audit does not single out selected elements of the marketing operation. 6.Gatekeepers are people who control information, either in the form of knowledge or access into, out of, or between members of the buying group.
4. Given a historical context of marketing, assess the present role of marketing in the Financial Services organizations and predict how marketing might "look" in the future.5. Identify specific marketing strategies utilized and develop criteria by which to analyzethose strategies.
on 6 Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to et red offer out of e question Select one: O a. a high-priced and a low-priced offering to a single market segment. O b. entirely different offerings to high-end and low-end segments. O c. a low-priced product to a high-income or high net worth segment. O d. a high-priced product to a low-income or low net worth segment. C e. different variations of the same basic offering to high-end and low-end segments.
Imagine you are the sales manager of a company that sells medical supplies to hospitals nationwide. You have 10 salespeople reporting to you. You are responsible for your department achieving a certain level of sales each yearwhat actions would you need to take if sales fell far below the budgeted level? What, if any, actions would you need to take if sales far exceeded the sales budget?