Value Is Determined by the Perceived Benefits a Good or Service

question 88

Multiple Choice

Value is determined by the perceived benefits a good or service provides to a(n)

• A) manufacturer.
• B) buyer.
• C) investor.
• D) retailer.

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Definitions:

Expected Return

The anticipated return on an investment, averaging in the probability of different outcomes.

Optimal Risky Portfolio

A portfolio construction that maximizes expected return for a given level of risk, based on modern portfolio theory.

Risk Free Rate

The theoretical return on investment with zero risk of financial loss, often represented by the yield on government bonds from stable governments.

Standard Deviation

A measure of the dispersion or variability in a set of values, often used to quantify the risk associated with a particular investment.