Scenario 21.1 Use the Following to Answer the Questions

question 121

Multiple Choice

Scenario 21.1
Use the following to answer the questions.
Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores.The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores,and would be priced higher than other brands in the store,but a lower price line than the current Ray-Ban lines that are sold through more selective stores.In determining the price for this sunglass line,Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands.
-Refer to Scenario 21.1.Given Ray-Ban's plan for positioning the new sunglass line,they should use a ____ strategy when introducing their new product.

• A)promotional
• B)penetration
• C)price-skimming
• D)reference
• E)secondary-market

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Definitions:

Well-Diversified

Refers to an investment portfolio that contains a wide variety of assets to minimize risk.

SML

The Security Market Line, a graphical representation of the expected return of investments as a function of their risk, as described by the Capital Asset Pricing Model.

Equally-Weighted Portfolio

An investment strategy where each asset in a portfolio is allocated the same percentage of total investment capital.

Economic Growth

The increase in the production of goods and services in an economy over a period of time, typically measured as the annual rate of increase in real GDP.