If a portfolio manager is considering how to retain or improve the portfolio's revenue while decreasing cost, which technique would be most helpful in assessing the best possible level of return?

Question

Options

• ACost-benefit analysis
• BPortfolio efficient frontier
• CScoring model
• DStrengths, weaknesses, opportunities, and threats analysis

• A
  95% (37)
• B
  3% (1)
• C
  3% (1)

Explanation

Cost-benefit analysis is the most direct technique for assessing the best possible level of return when the objective is to maximize revenue while minimizing cost. It quantifies and compares expected benefits (revenue) against expected costs, making it well suited for optimizing the revenue-to-cost ratio. The portfolio efficient frontier (B) optimizes the balance between risk and return across the entire portfolio mix, which is a broader strategic tool rather than a focused cost-versus-revenue assessment. Scoring models (C) rank components qualitatively, and SWOT (D) is a situational awareness tool, neither of which directly measures financial return.

No community discussion yet for this question.