Portfolio analysis is a useful and powerful tool,but firms often need to take a more balanced approach because:
A) measures are difficult to obtain and project.
B) classifications can become self-fulfilling prophecies and strengths and weaknesses are distorted.
C) substitute approaches can offer different insights.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

Measures for portfolio analysis can be difficult to obtain and project, leading to potential errors in analysis. Additionally, classifications can become self-fulfilling prophecies and strengths and weaknesses may be distorted. It is important for firms to consider substitute approaches that may offer different insights, rather than relying solely on portfolio analysis. Therefore, a more balanced approach is recommended.

Portfolio Analysis Is a Useful and Powerful Tool,but Firms Often