Overall, What Is the Major Disadvantage Associated with the Use

question 79

Multiple Choice

Overall, what is the major disadvantage associated with the use of public relations and publicity?

• A) It is normally very expensive.
• B) The amount of negative publicity always outweighs the good.
• C) Few, if any, customers pay attention to public relations messages.
• D) Most people find it to be less credible than advertising.
• E) The firm has limited control over how the message will be delivered or interpreted.

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Definitions:

Immunization

A strategy in fixed income investing that aims to make a portfolio's duration and interest rate risk match its liability obligations.

Duration Matching

An investment strategy where the durations of assets and liabilities are aligned to reduce the risk of changes in interest rates affecting the net worth.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, frequently used to assess interest rate risk.

Weighted-Average Time

A calculation that determines the mean time until cash flows are received, adjusted for the relative size of each cash flow, often used in bonds.