The First Blu-Ray Player Released by Samsung in 2006 Cost

question 56

Multiple Choice

The first Blu-ray player released by Samsung in 2006 cost $1000. Why was Samsung, the only producer of Blu-ray players at the time, able to set the price high?

• A) the economy was thriving and consumers could afford to spend $1000
• B) the Blu-ray was in the beginning stages of the product life cycle
• C) there was a lot of competition within the industry and Samsung had to price the Blu-ray accordingly
• D) the economy was struggling and $1000 was a low price

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Definitions:

Expected Return

The projected average return of an investment, taking into account all possible outcomes and their likelihoods.

Beta

A measure of a stock's volatility in relation to the overall market, used in the capital asset pricing model to determine risk.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss, often represented by the yield on government bonds.

Systematic Risk

The risk inherent to the entire market or market segment, unmitigable through diversification, often related to economic, political, or societal factors.