Nestlé Asked Suppliers to Find a Type of Glue to Make

question 15

True/False

Nestlé asked suppliers to find a type of glue to make the clicking sound louder when consumers snap open a tube of Smarties brand chocolate candies.

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Definitions:

Systematic Risk

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

Diversification

The process of allocating investments across various financial assets to reduce the risk exposure of a portfolio.

One-Factor APT

The Arbitrage Pricing Theory that describes the expected return of a financial asset in relation to a single systematic risk factor.

Factor Portfolio

An investment portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes.