Perceived Risk Is

question 168

Multiple Choice

Perceived risk is

• A) an unmerited fear of being taken advantage of in an exchange situation.
• B) the feeling of postpurchase psychological tension or anxiety that consumers may experience when faced with two or more highly attractive alternatives.
• C) the degree to which a seller is willing to make an exchange based upon a customer's creditworthiness.
• D) the personal, social, and economic significance of the purchase to the consumer.
• E) the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.

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Definitions:

Regression Analysis

A statistical method used to estimate the relationships among variables, often for the purpose of forecasting future trends or assessing cause and effect.

Adjustment Technique

Methods or procedures used to modify data, processes, or systems in order to correct errors or enhance functionality.

Mean-Variance Efficient Portfolio

An investment portfolio optimized for the highest expected return for a given level of risk, based on modern portfolio theory.

Covariances

A measure of how two securities move in relation to each other, indicating the degree to which their returns are interconnected.