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Britney Marr The Opportunity to Gain a Foothold in the Snack Cracker

question 152

Multiple Choice

Britney Marr
The opportunity to gain a foothold in the snack cracker industry had just been found. Britney Marr, an account executive manager for Baked Wheat Industries, had developed an interest in wheat crackers two months ago when one of her newly hired account execs, Amy Bender, had convinced her about the high margins and promising future associated with that market. Marr had always believed that if you do your homework in hiring the best people, then it only makes sense to listen to their recommendations and implement their suggestions.
Marr had given her approval to Bender to explore opportunities to move into this promising new market. This morning, Bender had reported that the Jackson Corporation had severed its contract with Feel Good Crackers Incorporated. Apparently, the Feel Good salesman had shared sensitive information about Jackson at a cocktail party. Bender had already established a good relationship with Feel Good buyers, and so she recognized this as an opportunity to expand her market into wheat crackers.
-Marr's management style reflects a belief in:

Definitions:

Single-Index Model

A model that represents the returns of a portfolio or asset as linearly dependent on the returns of a single market index, simplifying the evaluation of portfolio risk.

Markowitz Model

A portfolio optimization theory that demonstrates how to achieve the best portfolio allocation to maximize return for a given level of risk through diversification.

Systematic Risk

The risk inherent to the entire market or entire market segment, which cannot be eliminated through diversification.