A project that is exceptionally risky might still be undertaken by a firm if they have several other projects underway that are considered more of a sure thing.This approach to project selection is BEST described by the criterion called:
A)Strategic "fit."
B)Risk.
C)Desire for portfolio balance.
D)Top management pressure.

Question

Quizplus · Accepted Answer

This approach is called desire for portfolio balance. A firm may take on a riskier project if they have other ongoing projects that are less risky in order to balance out the overall risk of their portfolio. This helps to ensure that the firm does not take too much risk and can increase the likelihood of overall success.

A Project That Is Exceptionally Risky Might Still Be Undertaken