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

The criterion called "desire for portfolio balance" means that a firm seeks to balance their portfolio of projects based on risk and return. Therefore, a risky project may still be undertaken if the firm has other projects that are less risky and can balance out the overall risk profile of the portfolio.

A Project That Is Exceptionally Risky Might Still Be Undertaken