When Shoppers Boycotted Target Because the Chain Had a Policy

question 65

Multiple Choice

When shoppers boycotted Target because the chain had a policy of not allowing solicitors,including the Salvation Army,to collect money outside their doors,Target responded by ________.

• A) donating $9 million to the Salvation Army
• B) launching an advertising campaign claiming that the company supported a variety of charities and did not include the Salvation Army
• C) creating a department in its stores for inexpensive used goods
• D) allowing solicitors, including the indigent homeless, to solicit money just inside the front entrances to their stores
• E) defensively pointing to the 5 percent of their income they had invested in local communities since 1946

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Definitions:

Wildcat Fund

An investment fund that takes higher risks in anticipation of higher rewards, often investing in unproven sectors or speculative ventures.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, relative to the volatility of those excess returns.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, traditionally associated with government bonds or bills.

Information Ratio

A ratio used to measure the return of an investment relative to the risk taken, comparing the asset's returns beyond the benchmark to the volatility of those returns.