Ragu Is Debating How to Allocate the IMC Budget for His

question 7

Multiple Choice

Ragu is debating how to allocate the IMC budget for his new ski equipment store. He knows having knowledgeable salespeople in his store can simplify buyers' purchase decisions. He should also consider that, compared to other IMC alternatives, personal selling is

• A)easy.
• B)expensive.
• C)ineffective.
• D)overrated.
• E)simple.

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Definitions:

Risk-Free Assets

Investments that are considered to carry no risk of financial loss, typically represented by government bonds or treasury bills.

Equity Investments

Investments in stocks or shares, representing ownership in a company or entity and participation in its profits.

Risk Free Rate

The rate of return on an investment with no risk of financial loss, typically represented by the yield on government bonds.

Market Premium

The additional return an investor expects to receive from a market portfolio compared to the risk-free rate.