If a Customer Cannot Be Returned to Profitability and the Customer

question 18

Multiple Choice

If a customer cannot be returned to profitability and the customer is dropped,

• A)The company's overall profit will increase.
• B)The company's revenue will decrease in the short-run.
• C)The managers will have more resources to serve profitable customers
• D)The company's over profit will increase,the company's revenue will decrease in the short-run,and the managers will have more resources to serve profitable customers.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, also known as non-diversifiable risk or market risk, which cannot be alleviated just through diversification.

Hedge Fund Performance

The return generated by hedge funds, which are investment funds that employ various strategies to earn active return for their investors.

Carry

In finance, it refers to the profit or loss from holding an investment over a period of time, not including its price changes.

AUM

Assets Under Management, which refers to the total market value of the investments that a person or entity manages on behalf of clients.