Use the Information for the Question(s) Below

question 24

Multiple Choice

Use the information for the question(s) below.
Consider an economy with two types of firms, S and U. S firms always move together, but U firms move independently of each other. For both types of firms there is a 70% probability that the firm will have a 20% return and a 30% probability that
the firm will have a -30% return.
-What is the expected return for an individual firm?

• A) 3%
• B) 5%
• C) -5%
• D) 14%

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Definitions:

Market-product Grid

A matrix used to analyze and display the relationship between different markets and products, identifying opportunities.

Marketing Actions

Marketing actions entail strategies and tactics implemented by businesses to promote their products or services, aiming to enhance brand awareness and stimulate demand.

Product Groupings

The organization of products into categories or families based on similarities in function, customer segment, or other characteristics, facilitating easier management and marketing.

Demographic Variables

Demographic variables are characteristics such as age, gender, income, education level, and ethnicity, used to classify and understand target markets or populations.