Setting Up a Hub-And-Spoke Distribution Towards Inventory and Retail Delivery

question 1

Multiple Choice

Setting up a hub-and-spoke distribution towards inventory and retail delivery is an example of

• A)increased consumer transactions cost.
• B)increased producer transactions cost.
• C)reduced consumer transactions cost.
• D)reduced producer transactions cost.

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Definitions:

Diversification Effects

The reduction in risk achieved by investing in a variety of assets, thus minimizing the impact of poor performance from any single asset.

Portfolio A

A specific collection of financial assets such as stocks, bonds, cash equivalents, and their mutual funds, owned by an individual or an institutional investor.

Portfolio B

Portfolio B is not a specific term but could refer to a theoretical or actual portfolio of investments selected as a part of an investment strategy or for analysis.

Variance

A measure of the distribution’s variability. It is the sum of the squared deviations about the expected value.