If a Company's Pricing Objective Is to Meet the Competition

question 87

Multiple Choice

If a company's pricing objective is to meet the competition or to maintain existing prices,it is using _____ pricing.

• A) head-on
• B) target return on investment
• C) status quo
• D) market share
• E) demand-oriented

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Definitions:

Nearly Identical Duration

A characteristic of two or more financial instruments whose cash-flows occur over a similar time frame, making their sensitivity to interest rate changes similar.

Hedge Fund Fee Structure

The compensation arrangement between hedge funds and their managers, typically involving a management fee plus a performance fee based on the fund's returns.

Management Fee

A charge levied by an investment manager for managing an investment fund's portfolio of securities.

Incentive Fee

A fee charged by hedge funds equal to a share of any investment returns beyond a stipulated benchmark performance.