While Social Media Has Been an Effective Marketing Tool in Promoting

question 27

True/False

While social media has been an effective marketing tool in promoting organisations and their products and services, it also comes with high risk due to the lack of control an organisation has in relation to the speed with which it can damage an organisation's brand, image and reputation.

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Definitions:

Residual Standard Deviation

A statistical measure used in finance to estimate the deviation of investment returns from an expected return or the performance benchmark, indicating the risk involved.

Beta

A measure of a security's volatility in relation to the overall market, indicating its relative risk.

Risk-Free Return

The hypothetical earnings from an investment that carries no risk, typically illustrated by the return on government bonds, such as U.S. Treasury bills.

Jensen Measure

A performance metric that evaluates investment manager's returns excess compared to what could have been earned on a risk-adjusted basis.