Viewing strategy as a portfolio of options rather than a portfolio of investments relies upon the rationale that:
A)Uncertainty means that flexibility is valuable
B)Committing to a long-term program of investment can be disastrous if circumstances change
C)Most investment projects can be divided into a sequence of stages where,at any point of time,it is only necessary to decide the next stage
D)All of these

Question

Quizplus · Accepted Answer

The statement "Viewing strategy as a portfolio of options rather than a portfolio of investments relies upon the rationale that uncertainty means that flexibility is valuable, committing to a long-term program of investment can be disastrous if circumstances change, most investment projects can be divided into a sequence of stages where, at any point of time, it is only necessary to decide the next stage" is true. Therefore, the best choice is D, which includes all the options.

Viewing Strategy as a Portfolio of Options Rather Than a Portfolio