Control Based on the Use of Pricing Mechanisms and Economic

question 54

Multiple Choice

Control based on the use of pricing mechanisms and economic information is referred to as

• A) Clan control.
• B) Feedback control.
• C) Market control.
• D) Feedforward control.
• E) Bureaucratic control.

---

Definitions:

Required Return

The minimum expected return by investors for investing in a particular asset, considering the risk involved.

Price Appreciation

An increase in the value of an asset over time, not accounting for dividends or interest.

Rate of Return

Rate of return is the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Market Rate of Return

The average or expected return of the marketplace on investments, often used as a benchmark to assess the performance of individual investments or portfolios.