Chovita Sports Company Evaluated a Project as a Low-Risk Project

question 48

Multiple Choice

Chovita Sports Company evaluated a project as a low-risk project. Chovita generally evaluates projects that are less risky than average by adjusting its required rate of return by 2 percent. If Chovita expects 12% return on average risk projects, then it should expect a return of _____ for a less-risky project.

• A) 8%
• B) 12%
• C) 16%
• D) 10%
• E) 48%

---

Definitions:

Marketing Activities

The wide range of actions companies undertake to promote and sell their products or services to consumers.

Tactical Marketing Decisions

Short-term actions and strategies designed to achieve immediate marketing goals.

Place/Distribution Strategy

A component of the marketing mix that determines the channels through which a product reaches the end consumer, including decisions about retailers, online presence, and logistics.

Mass Merchandisers

Large retail stores that sell a wide variety of goods at low prices, often in bulk quantities.