Multiple Choice
In the context of investments in securities, segmentation and targeting are the link between the buyers' needs and which of the following?
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7. Receivables and Investments
Introduction to Investments in Securities
Multiple Choice
Which of the following is the best example of a well-stated strategic objective related to investments in securities?
A
Make the portfolio better than last year.
B
Try to avoid losses in the investment portfolio.
C
Increase the portfolio's annual return by 8% over the next three years while maintaining a moderate risk profile.
D
Invest in more stocks to improve performance.
Verified step by step guidance1
Understand the concept of a strategic objective: A strategic objective is a clear, measurable, and time-bound goal that aligns with the organization's overall strategy. It should be specific and actionable.
Evaluate the options provided: Analyze each option to determine whether it meets the criteria of a strategic objective. Look for specificity, measurability, and alignment with a defined timeframe.
Option 1 ('Make the portfolio better than last year'): This is vague and lacks measurable criteria or a timeframe. It does not qualify as a well-stated strategic objective.
Option 2 ('Try to avoid losses in the investment portfolio'): While it addresses risk, it is not specific or measurable and does not include a timeframe. It is not a strategic objective.
Option 3 ('Increase the portfolio's annual return by 8% over the next three years while maintaining a moderate risk profile'): This is specific, measurable (8% return), time-bound (three years), and includes a risk consideration. It is the best example of a well-stated strategic objective.
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