Pure Fix Cycles, the Company Profiled in the Opening Feature

question 38

Multiple Choice

Pure Fix Cycles, the company profiled in the opening feature of Chapter 1, was launched by four co-founders and sells ________.

• A) fixed gear, single speed bikes
• B) entry level bikes that sell in the $100 price range
• C) bikes the are durable enough that they almost never need to be fixed
• D) high quality bikes that sell in the $1,000+ price range
• E) multiple gear, multiple speed bikes

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Definitions:

Bullish Position

An investment strategy where an investor believes that a particular asset's price will rise.

Performance Evaluation

The process of examining how well investments or portfolios have done over a period, comparing their returns against benchmarks or objectives.

Survivorship Bias

The analytical error of focusing only on entities that have "survived" a selection process, ignoring those that have failed.

Infrequently-Traded Assets

Assets that do not trade on a regular basis on the secondary market, making their valuation and liquidity different from frequently traded assets.