Which of the Following Is True of Multipoint Pricing

question 75

Multiple Choice

Which of the following is true of multipoint pricing?

• A)It involves aggressive pricing in one market to elicit a competitive response from a rival in another market.
• B)It involves a firm pricing its products at a loss in order to drive out competitors from the market.
• C)It involves buying products at a cheaper rate in one country and selling those at a higher price in another country.
• D)It involves allowing markets to determine the pricing of a product.
• E)It involves pricing two similar products at low and high prices in order to boost sales of the lower priced products.

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Definitions:

Market Neutral

An investment strategy that seeks to avoid some forms of market risk by taking matching long and short positions in different stocks to increase the potential for absolute returns.

Relative Value

A measurement that assesses the worth of an asset by comparing it with the value of similar assets.

Incentive Fees

Fees charged by a fund manager based on the fund's performance, usually a percentage of the investment's earnings above a specified benchmark.

Portfolio Return

The overall gain or loss generated by the collection of investments held by an individual or institution, measured over a specific period.