Sherwin-Williams Company Provides Paint and Supplies to Businesses and Individuals

question 168

Multiple Choice

Sherwin-Williams Company provides paint and supplies to businesses and individuals through its network of company-owned retail outlets. Sherwin-Williams employs outside sales representatives who make personal calls with prospects and customers in order to gain insight about their needs and persuade them to utilize Sherwin-Williams for their painting projects. Typically, a Sherwin-Williams sales representative will focus his or her efforts on specific customers such as hospital facility managers, apartment complex managers, painting contractors, or education institution facility managers. Sherwin-Williams is utilizing the ______ variable for segmenting business markets.

• A)customer size
• B)type of organization
• C)geographic location
• D)product use

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Definitions:

Systematic Risk

This refers to the inherent risk that affects the entire financial market or a whole market segment, unpreventable through diversification.

Benchmark Risk

The risk that a portfolio's performance deviates from its benchmark index.

Portfolio Difference

The distinct variations and diversifications in an investment portfolio that aim at minimizing risk and maximizing returns.

Alpha

A measure of investment performance on a risk-adjusted basis, representing the excess return of an investment relative to the return of a benchmark index.