Valeo Fashions Has Just Introduced a New Line of Fashion

question 12

Multiple Choice

Valeo Fashions has just introduced a new line of fashion dresses for teens.The line will initially enter the market at high prices in a ________ strategy.

• A)penetration pricing
• B)skimming pricing
• C)price leadership
• D)yield management pricing
• E)value pricing

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Definitions:

Interest Days

Refers to the specific days on which interest is calculated, often relevant in banking and finance for determining amounts owed or earned.

Structured Investment Vehicles

Finance entities created to manage a portfolio of investment assets, often using leverage to finance long-term assets with short-term debt.

SIVs

Structured Investment Vehicles, which are pool investment entities created to finance long-term assets with short-term debt, known for their role in the financial crisis due to liquidity issues.

Credit Default Swap

A financial derivative that allows an investor to "swap" or offset their credit risk with that of another investor.