Cisco Has a Different Idea About ROMI

question 27

Multiple Choice

Cisco has a different idea about ROMI.Managers there feel that instead of measuring response, it may be better to measure ____________.

• A) The progression of the contact throughout the buying cycle
• B) The response to specific coupons and direct techniques
• C) The response to mass media without looking at new media
• D) The response to new media while ignoring mass media
• E) None of the above

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Definitions:

Alpha

In investing, alpha is a measure of the performance of an investment relative to a suitable benchmark index, indicating excess or deficient return.

Security

A financial instrument representing ownership in a publicly-traded corporation (stock), a creditor relationship with a government or corporation (bond), or rights to ownership as represented by an option.

Rate of Return

The profit or deficit from an investment during a designated time frame, represented as a fraction of the investment's initial value.

Security Market Line

A graphical representation that shows the relationship between the risk of an investment and its expected return, based on the capital asset pricing model.