Consumers Are Required to Pay Consumer Fees Because Businesses Allegedly

question 112

Multiple Choice

Consumers are required to pay consumer fees because businesses allegedly:

• A) will sell more if the consumer is unaware of the actual costs
• B) suffer an irrevocable revenue loss
• C) are required by the federal government to charge this fee
• D) avoid additional transactional costs when purchase agreements are violated
• E) incur greater fixed costs as a result of the purchase agreement violation

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.

Jensen Measure

A performance metric that calculates the excess return of a portfolio over the predicted return by the Capital Asset Pricing Model (CAPM).

Risk-Free Return

The return on an investment with no risk of financial loss, typically associated with government bonds.

Treynor Measure

A performance metric on investment funds that accounts for the risk taken by the investment relative to the market risk as measured by beta.