Which of the following statements is true of a portfolio strategy?
A) It is a corporate-level strategy with the purpose of reducing risk in the entire collection of stocks.
B) It emphasizes on improving the way in which the company sells the same products.
C) It measures the intensity of competitive behavior among companies in an industry.
D) It focuses on turning around very poor company performance by significant cost reductions.

Question

Quizplus · Accepted Answer

A portfolio strategy is a corporate-level strategy that aims to reduce risk by diversifying the company's investments across different industries, product lines, and geographic regions. It involves the selection and management of a group of stocks, bonds, or other investments to achieve a desired level of return with minimum risk. Option B refers to a marketing or sales strategy, Option C refers to a competitor analysis, and Option D refers to a cost leadership or turnaround strategy.

Which of the Following Statements Is True of a Portfolio