A project 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 based on the desire for portfolio balance. A firm may choose to undertake a risky project as long as it is balanced by other less risky projects in the portfolio. This helps to spread the risk and increase the overall success rate of the portfolio.

A Project Is Exceptionally Risky Might Still Be Undertaken by a Firm