Tony Has Been a Loyal PlayStation User for the Last

question 64

True/False

Tony has been a loyal PlayStation user for the last few years and has invested over $500 in the console, controllers and about 20 games that can only be played on the PlayStation platform. A new game has just been launched for the Xbox One that Tony wants to buy, but he would have to purchase a new Xbox and controllers for $500 in order to play the game. Tony decides not to buy the new Xbox game due the costs. Tony's decision was based on high switching costs.

---

Definitions:

Covariance

A measure that indicates the extent to which two securities move in the same or opposite directions.

Stock Selection Return

The return achieved by an investor that can be attributed to the specific stocks chosen for investment, rather than the overall market movement.

Cross Border Fund

An investment fund that seeks to invest in assets located in countries other than where the fund is domiciled.

Benchmark

A standard or point of reference against which things may be compared or assessed, often used in investing to measure the performance of securities or portfolios.