Exhibit 81
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 87

Multiple Choice

Exhibit 8.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\text { Rates of Return }\\\begin{array} { c c c } \text { Year } & \text { RA Computer } & \text { Market Index } \\\hline 1 & 13 & 17 \\2 & 9 & 15 \\3 & - 11 & 6 \\4 & 10 & 8 \\5 & 11 & 10 \\6 & 6 & 12\end{array}\end{array}$$
-Refer to Exhibit 8.1. If you expected the return on the Market Index to be 12%, what would you expect the return on RA Computer to be?

• A)7.26%
• B)6.75%
• C)8.00%
• D)9.37%
• E)-3.29%

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Definitions:

Modify Existing Products

The process of making alterations or improvements to current products to meet new requirements or take advantage of new market opportunities.

New-to-the-world Products

Innovations that create an entirely new market by being the first of their kind.

Late Majority

The last group of buyers to enter a new product market; when they do, the product has achieved its full market potential.

Early Adopters

The second group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; generally don’t like to take as much risk as innovators but instead wait and purchase the product after careful review.