Once Consumers Have Used a Product, Seen It Advertised, or Noticed

question 88

True/False

Once consumers have used a product, seen it advertised, or noticed it in a store, it moves from the unknown to the known category, which increases the probability that they will purchase it.

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Definitions:

CAPM

The Capital Asset Pricing Model, a formula used to determine the theoretical expected return of an investment given its risk relative to the market.

Risk-free Asset

An investment with zero risk of financial loss, typically considered to be government bonds.

Systematic Risk

Systematic risk refers to the risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

CAPM

A financial theory that calculates the expected return on an investment based on its risk relative to the market as a whole.