Shopping Bots

question 63

Multiple Choice

Shopping bots:

• A) encourage a more creative use of advertising
• B) link manufacturers,suppliers,and customers
• C) create opportunities for prestige pricing
• D) provide a means for comparison shopping
• E) create inelastic demand

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Definitions:

Required Return

The smallest annual return percentage required to motivate persons or firms to allocate funds into a certain security or initiative.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by government bonds.

Market Risk Premium

The additional profit that an investor predicts they will earn from a risky market portfolio as opposed to risk-free financial instruments.

Expected Return

The anticipated average return on an investment, taking into account all potential outcomes and their probabilities.