Smartphone Apps Are Providing Stiff Competition for Physical Retail Stores

question 81

Multiple Choice

Smartphone apps are providing stiff competition for physical retail stores because

• A)consumers can "tweet" their product preferences.
• B)consumers can simultaneously check prices at other stores while shopping for a product in a brick-and-mortar retail store.
• C)consumers can create and save shopping lists on their smartphones.
• D)consumers using the app Instagram can shop instantly.

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Definitions:

Risk-free Rate of Return

The theoretical rate of return of an investment with zero risk, typically represented by government bonds.

Market Rate of Return

The expected or average annual rate of return on an investment, based on historical or specified market data.

Asset-specific Risk

The risk associated with an investment in a specific asset, which can result from factors unique to that asset, independent of the market.

Portfolio Diversification

Portfolio diversification is an investment strategy that aims to reduce risk by allocating investments among various financial instruments, industries, and other categories.