Consider the Survey Question Shown Below One Hundred People Answer the Question After Seeing Commercial a Commercial

question 44

True/False

Consider the survey question shown below. Thinking back to the commercial you just saw, how relevant or not relevant would you say the commercial's message was? Hould you say that it was ..
$\begin{array} { l l } \text { Extremely relevant } & \text { \_\_\_\_(1) } \\ \text { Somewhat relevant } & \text { \_\_\_\_(2) } \\ \text { Somewhat irrelevant } & \text { \_\_\_\_(3) } \\ \text { Extremely irrelevant } & \text { \_\_\_\_(4) } \end{array}$
One hundred people answer the question after seeing Commercial A and a different 100 people answer this question after seeing Commercial B.The average relevance for Commercial A was 3.0 and the average relevance for Commercial B was 3.0.
This means that the percentage of individuals selecting "Extremely relevant" was identical for the two commercials.

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Definitions:

Risk-Adjusted Discount Rate

A discount rate that adjusts for the risk of the cash flows, giving a more accurate present value estimate.

Market Return

The total return on investment, including dividends and capital gains, from holding a market portfolio.

Nondiversifiable Risk

A type of risk that affects all investments across the market and cannot be eliminated through diversification.

Diversifiable Risk

A type of investment risk that can be reduced or eliminated in a portfolio through diversification, as it is not correlated with market movements.