The Razor-And-Razor-Blade Revenue Model

question 49

Multiple Choice

The razor-and-razor-blade revenue model:

• A)includes and tangible and intangible sales
• B)includes the sale of a low-cost physical product to encourage the sale of more expensive products
• C)includes a high-cost product with easy-to-replace parts
• D)includes additional products as an add-on to the sale

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Definitions:

Systematic Risk

Systematic risk refers to the inherent risk that affects the entire market or a major market segment and cannot easily be mitigated through diversification.

Diversifiable Risk

A type of investment risk that can be reduced or eliminated through diversification of an investment portfolio.

Systematic Risk

The danger that affects the whole market or a specific sector of the market, commonly referred to as market risk or non-diversifiable risk.

Expected Returns

The anticipated return on an investment, representing the mean of the probability distribution of the possible returns.