Which segment accounts for 12% of revenue?

Prepare for the GARP Financial Risk Manager (FRM) Part 1 Exam. Use our quizzes featuring multiple choice questions with hints and detailed explanations for comprehensive understanding!

The choice that indicates both Agency Services and Retail Brokerage collectively accounts for 12% of revenue is considered accurate because in financial services, it's common for various segments to contribute to overall revenue in significant but varying proportions. Agency Services typically includes services that facilitate transactions for clients, while Retail Brokerage involves the buying and selling of securities on behalf of retail clients. If the question specifies that together these segments make up 12% of revenue, it is plausible in a financial context, especially since both segments are essential components of a full-service investment firm or financial institution.

The other segments, Corporate Finance for instance, may be crucial as well but could also likely contribute a different percentage to the overall revenue. In a scenario where both the highlighted segments combine to create a specific contribution to revenue, understanding the dynamics and operations of each segment allows one to appreciate how they complement each other within the firm's broader revenue-generating strategy. Each area engages different clientele and requires distinct business strategies, leading to their specific contributions to the overall financial performance.

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