Which of the Following Is NOT a Benefit That an Intermediary

question 79

Multiple Choice

Which of the following is NOT a benefit that an intermediary is likely to provide for producer-suppliers?

• A) reduce credit risk
• B) reduce the need to store inventory
• C) reduce the need for marketing research
• D) reduce the need for working capital
• E) All of these are likely benefits provided to suppliers.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates that the stock is more volatile than the market, while a beta below 1 indicates it is less volatile.

Unadjusted Beta

Unadjusted beta is the raw beta value of a security or portfolio without any adjustments for its specific risks and characteristics, typically used as a measure of its volatility against the market.

Adjusted Betas

Betas that have been modified to account for the tendency of a stock's market risk measure to regress towards the mean over time, used in finance to predict future betas.

Market Index

A statistical aggregate that measures the performance of a basket of stocks to represent a particular market or sector.