Which of the Following Is NOT True About Direct-Response TV

question 9

Multiple Choice

Which of the following is NOT true about direct-response TV?

• A) Infomercials range from 3 to 60 minutes.
• B) It encompasses direct-response TV spots, infomercials, and home shopping shows.
• C) The process is always one-step; the consumer sees the product she likes and calls a 1-800 number to order.
• D) The television spots are also referred to as short-term programs.

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Definitions:

Average Excess Returns

The average return on an investment above the return of a benchmark or risk-free asset.

Quasilinear

Pertaining to equations or functions that are nearly, but not exactly, linear in their behavior or representation.

Betas

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates greater volatility than the overall market.

Multifactor Model

Model of security returns positing that returns respond to several systematic risk factors as well as firm-specific influences.