Jake Owns and Operates a Small Store That Sells Relatively

question 75

Multiple Choice

Jake owns and operates a small store that sells relatively few items. His store is open 24 hours a day, and most of his customers live very close to the store. Jake owns a

• A) supermarket.
• B) discount store.
• C) specialty store.
• D) convenience store.
• E) single-line retail store.

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Definitions:

Systematic Risk

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

Purely Passive Strategy

An investment strategy that involves no active management and typically focuses on investing in index funds to replicate market returns.

Mean-Variance Efficient

A portfolio strategy that aims to minimize risk for a given level of expected return, or equivalently, maximize return for a given level of risk.

Index Funds

Investment funds designed to track the components of a market index, offering broad market exposure, low operating expenses, and low portfolio turnover.