In Framing the Channel Selection Decision, Which of the Following

question 3

Multiple Choice

In framing the channel selection decision, which of the following considerations pertains to an intermediary's characteristic?

• A) Purchasing patterns of the intermediary
• B) Financial condition of the intermediary
• C) Political issues
• D) Technological changes

---

Definitions:

Security Market Line

A graphical representation of the expected return of all risky marketable securities as a function of their beta, or systemic risk, according to the capital asset pricing model.

Diversifiable Risk

Relates to the risk that can be reduced or eliminated from a portfolio by holding a variety of investments.

Non-Diversifiable Risk

A type of investment risk that cannot be eliminated through diversification, arising from factors that affect all companies.

Efficient Markets Hypothesis (EMH)

The hypothesis is that actual capital markets, such as the TSX, are efficient.