If You Were to Develop a Text Messaging System That

question 37

Multiple Choice

If you were to develop a text messaging system that was able to piggy back messages onto other messages moving through the network, and, thereby allowing users to send more messages for less money, how would you be enhancing your competitive strategy?

• A) Through focus
• B) As a product leader
• C) Through loyalty enhancement
• D) Through overall cost leadership

---

Definitions:

Security Market Line

A representation of the capital asset pricing model which shows the relationship between risk (as measured by beta) and expected return of investments.

Expected Return

The anticipated profit or loss an investment is predicted to generate, acknowledging the potential for volatility and risk.

Beta

A means to compare the stability and risk factor of a security or portfolio relative to the market as a whole.

SML (Security Market Line)

A line that represents the expected return of an investment as a function of its risk, with the risk measured by the investment's beta.