Customer Defection Rates Are

question 21

Multiple Choice

Customer defection rates are:

• A)not directly related to unit cost.
• B)an indication of a company's ability to satisfy its customers.
• C)irrelevant as they are unlikely to impact advertising and marketing costs.
• D)unlikely to affect sales volumes.
• E)not affected by cost of products.

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Definitions:

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.

Risk-Free Return

The theoretical rate of return of an investment with zero risk of financial loss.