When Jerry,a Purchasing Agent,was Looking for Ice Cream Suppliers for JT

question 70

Multiple Choice

When Jerry,a purchasing agent,was looking for ice cream suppliers for JT' Frozen Treats,he got bids from the top two dairies in the area as opposed to all the available suppliers.What type of a decision does he have to make?

• A)Programmed
• B)Intuition
• C)Judgement
• D)Satisficing
• E)Optimizing

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Definitions:

Market Risk Premium

The additional return expected by investors for taking on the higher risk of investing in the stock market over a risk-free rate.

Systematic Risk

Systematic risk refers to the inherent risk that affects the entire market or a large segment of the market, often influenced by macroeconomic factors such as inflation, political turmoil, or changes in interest rates.

Individual Security

An individual security refers to a specific financial instrument such as a stock or bond, representing ownership in a company or an obligation owed by an entity.

Market Risk Premium

The additional return expected by investors for holding a risky market portfolio instead of risk-free securities.