If an 8-Page Insert in the Toronto Star Has a CPM

question 46

Multiple Choice

If an 8-page insert in the Toronto Star has a CPM rate of $10.00, then 421 700 inserts would cost

• A) $2 272 500
• B) $227.25
• C) $42,170
• D) $450 000
• E) $22 139.25

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Definitions:

Systematic Variance

The portion of a security's return variance that is attributable to macroeconomic factors and cannot be diversified away.

Total Variance

The sum of squared deviations from the mean, indicating the overall level of variability within a dataset.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to 1.

Diversification

A strategy to reduce risk by allocating investments among various financial instruments, industries, and other categories.