When a Sales Rep Divides the Net Profits (Or Savings)

question 104

Multiple Choice

When a sales rep divides the net profits (or savings) produced for a client by the amount of money the client is investing, the resulting figure is called the:

• A)net revenue.
• B)return on investment.
• C)net present value.
• D)payback percentage.
• E)opportunity cost.

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Definitions:

Professional Fund Managers

Individuals or entities responsible for making investment decisions and managing investment portfolios on behalf of investors.

Outperform

To do better than others or than a benchmark, often used in the context of investment performance.

Frame Dependence

The influence of presentation or context on decision-making outcomes.

Loss Aversion

A cognitive bias where the pain of losing is psychologically about twice as powerful as the pleasure of gaining, impacting financial and investment decisions.