Jerry Is a Comedian, Who Is Scheduled to Appear After

question 69

Multiple Choice

Jerry is a comedian, who is scheduled to appear after a set by his friend Larry. Larry has a great set and receives roars of approval and laughter from the audience. Based upon the contrast effect, Jerry should

• A) be concerned that the audience will be less impressed with his performance than if Larry had not been so funny.
• B) feel confident that the audience will respond positively to his act because they are already in a good mood.
• C) be concerned that the audience will be too distracted by the previous performance to pay much attention to his jokes.
• D) increase his credibility by pointing out to the audience just how funny Larry was.

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Definitions:

Asset A

A hypothetical or specific item of economic value owned by an individual or corporation, expected to provide future benefit.

Risk-Free Rate

is the theoretical return on an investment with no risk of financial loss, typically represented by the yield on government securities such as U.S. Treasury bills.

Expected Return

The anticipated yield or gain from an investment over a certain period based on historical data or probabilistic estimates, which may not be guaranteed.

Market Return

The total return on an investment, including dividends and capital gains, over a specific period, reflecting the overall performance of the financial market.