The process of maximizing the upside or limiting the downside of an investment opportunity by uncovering and quantifying the options and discussion points embedded within it is referred to as ________.
A) value curve analysis
B) new-market analysis
C) chaotic analysis
D) real-options analysis

Question

Quizplus · Accepted Answer

The process described in the question is the definition of real-options analysis. Option A, value curve analysis, refers to a framework for understanding a company's value proposition. Option B, new-market analysis, refers to evaluating the potential of market opportunities. Option C, chaotic analysis, is not a recognized term in investment analysis.

The Process of Maximizing the Upside or Limiting the Downside