Which of the Following Statements About Consumer Ethics Is Most

question 93

Multiple Choice

Which of the following statements about consumer ethics is most accurate?

• A)Consumer complaints about online auction fraud outnumber all reports of online crime.
• B)The cost to marketers of unethical consumer behavior is negligible in terms of lost sales.
• C)The potential cost to marketers of unethical consumer behavior is dramatically reduced by investing in loss prevention training.
• D)Retailers lose about $1 million a day from shoplifting.
• E)At some point,every person shoplifts or participates in an unethical exchange;to retailers,it is simply the cost of doing business.

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Definitions:

Weak-Form Efficient

A market hypothesis suggesting that all past prices of stock are reflected in the current price, hence historical data cannot be used to predict future prices.

Strong-Form Efficient

A hypothesis that states all information, both public and private, is completely accounted for in stock prices, and that no investor can achieve consistently higher returns.

CAPM

The Capital Asset Pricing Model, a formula used to determine the expected return of an asset based on its beta and expected market returns, thus assessing its inherent risk and cost of capital.

Beta

A measure of a security's or portfolio's volatility, or systematic risk, in comparison to the market as a whole.