Question 8. 8. Which of the following best describes a pure-play? (Points : 1)
a private firm that is held in isolation in a one-company investment portfolio
a publicly traded firm that is similar to the company or project being analyzed
Both a and b are correct.
Neither a nor b is correct.
To determine the answer to this question, let's break down the different options:
a) A private firm that is held in isolation in a one-company investment portfolio.
b) A publicly traded firm that is similar to the company or project being analyzed.
To find the correct answer, we need to understand what a pure-play means. A pure-play typically refers to a company that operates exclusively in one specific industry or sector.
Option a describes a private firm held in isolation in an investment portfolio, but it doesn't mention anything about the firm's focus on one specific industry or sector. So, it doesn't accurately describe a pure-play.
Option b describes a publicly traded firm that is similar to the company or project being analyzed. While this option mentions a publicly traded firm, it also doesn't mention the exclusive focus on one industry or sector. Therefore, this option also doesn't accurately describe a pure-play.
Since neither options a nor b correctly describe a pure-play, the correct answer is "Neither a nor b is correct."