Which of the Following Is True of Store Retailers

question 29

Multiple Choice

Which of the following is true of store retailers?

• A) A hard-discount store offers a wider merchandise mix than discount stores at higher prices.
• B) A discount store offers leftover goods, overruns, and irregular merchandise sold at less than retail.
• C) A specialty store generally stocks a very narrow product line.
• D) An extreme value store generally has a broad selection of high-markup, brand-name goods.
• E) A catalog showroom is a large, low-cost, low-margin, high-volume, self-service store.

Describe the optimal weighting of securities within an active portfolio according to the Treynor-Black model.

Differentiate between a purely passive investment strategy and one that combines passive and active elements.

Use macroeconomic and composite forecasts to determine the optimal risky portfolio in the Treynor-Black model.

Explain the properties of a risky portfolio that combines an active portfolio of mispriced securities with a market portfolio.