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1 vote
Q1.a) Assuming no constrains on using margins or short selling, how high can your portfolio return be?

a, The weighted average of the firms returns.

b.There's no limit

c. As high as the return of the asset with the highest return.

d. The weighted weighted average of the firms returns.

1, b) What's the lowest possible level of risk that can be achieved when constructing a portfolio?

a. Portfolio Risk can be a low as the average risk of the asset included.

b. Portfolio Risk can be eliminated.

c. Portfolio Risk can be a low as the weighted average risk of the asset included.

d. Portfolio Risk can be a low as the risk of the asset with the lowest risk.

User Nate Reed
by
8.1k points

1 Answer

2 votes

Answer:

a) Answer a) is incorrect. Organizations in high-growth industries where decisions need

to be made quickly are not likely to adopt zero-based budgeting, because the detailed

process underlying this approach to budgeting is very time consuming. Answer b) is

correct. Organizations that have access to a limited amount of resources and need to

justify their expenditures in detail are most likely to adopt a zero-based budgeting

approach.

*b) Answer b) is correct. Organizations that have access to a limited amount of

resources and need to justify their expenditures in detail are most likely to adopt a zerobased budgeting approach.

c) Answer c) is incorrect. The zero-based budgeting approach constitutes a very

detailed approach to budgeting. It bears no relation to organizations that implement

zero-defect policies. Answer b) is correct. Organizations that have access to a limited

amount of resources and need to justify their expenditures in detail are most likely to

adopt a zero-based budgeting approach.

d) Answer d) is incorrect. The zero-based budgeting approach constitutes a very

detailed approach to budgeting and control. Therefore, it cannot be said that

organizations that have adopted zero-based budgeting focus only on the big picture.

Answer b) is correct. Organizations that have access to a limited amount of resources

and need to justify their expenditures in detail are most likely to adopt a zero-based

budgeting approach

User Marcolz
by
7.9k points
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