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- Some people tend to use the terms effectiveness and efi ciency interchangeably, though we’ve seen they are different concepts. But is there any relationship at all between them? Can a i rm be effective but inefi cient? Very efi cient but essentially ineffective? Both? Neither?Why is it that value-laden words like "cash cow" and "dog" can lead to self-fulfilling prophecies in portfilio analysis?Is the model an accurate representation of reality?