Which of the Following Is NOT a Factor That a Manager

question 24

Multiple Choice

Which of the following is NOT a factor that a manager should bear in mind when estimating a project's revenues and costs?

• A) Sales of a product will typically accelerate, stabilize, and then decline as the product becomes outdated or faces increased competition.
• B) A new product typically has its highest sales immediately after release as customers are attracted by the novelty of the product.
• C) The prices of technology products tend to fall over time as newer, superior technologies emerge and production costs decline.
• D) Prices and costs tend to rise with the general level of inflation in the economy.

Understand the impact of risk aversion on investment decisions and market outcomes.

Recognize the relevance of the Capital Asset Pricing Model (CAPM) in evaluating investments.

Understand the difference between systematic and unsystematic risk and their implications for investment strategy.

Comprehend how managerial decisions can impact a firm's beta and overall risk profile.