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Refer to the following scenario to answer the questions below.
Travelocity.com is an online travel agency that advertises that users will get the best prices on airfare,hotels,and rental cars.Travelocity.com uses the "Roaming Gnome" in its television commercials,often in humorous situations.For example,a recent ad showed the gnome in Europe where he plugged an American appliance (i.e. ,hair dryer) into a socket and was shocked across the room.All that was shown of him when the smoke cleared was the top of his gnome hat down behind a chair.Viewers hear him say,"Am I going to die?"
-When a new concept and execution is developed for a television commercial,Travelocity.com's advertising agency provides a visual plan or layout of the commercial for the company to approve.This plan is called a(n) ________.
Expected Rate of Return
The projected percentage return on an investment over a given period, factoring in all known variables.
Beta
A measurement of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
Capital Market Line
A theoretical line representing the risk versus return of the market of all investable assets, assuming risk-free borrowing and lending rates.
Security Market Line
A representation of the capital asset pricing model which shows the relationship between risk (as measured by beta) and expected return of investments.
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