Many Services Have Aspects That Consumers May Never Be Able

question 30

Multiple Choice

Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called

• A) search qualities.
• B) performance attributes.
• C) experience qualities.
• D) immeasurable attributes.
• E) credence qualities.

---

Definitions:

Expected Return

The average of all possible returns for an investment, weighted by the probability of each outcome, indicating the potential return over time.

Capital Asset Pricing Model

A theory detailing how systematic risk correlates with the expected return for investments, mainly in the stock market.

Stock Correlation

A statistical measure that describes how the movements of two stocks are related to each other.

Risky Assets

Assets that carry a significant degree of risk of loss, often associated with higher potential returns as compensation for the risk taken.