Most People Would Prefer to Drive a Luxury Car That

question 272

Multiple Choice

Most people would prefer to drive a luxury car that has all the options, but more people buy less expensive cars even though they could afford the luxury car because

• A)car buyers are irrational.
• B)the total utility of less expensive cars is greater than that of luxury cars.
• C)the marginal utility per dollar spent on the less expensive car is higher than that spent on luxury cars.
• D)luxury cars cost a lot more than non-luxury cars.

Understand the role and impact of social networks in organizations.

Identify the benefits and challenges of using social media for internal and external communications.

Recognize different compositional modes used in digital communications to engage specific audiences.

Appreciate the significance of audience interaction through social media and its effect on corporate reputation.

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Definitions:

Portfolio Risk

The risk associated with holding a portfolio of investments, reflecting the potential for loss due to market volatility.

Diversified Away

A strategy to reduce risk by allocating investments among various financial instruments, industries, or other categories to avoid overexposure to any single asset or risk.

Market Risk Premium

The additional yield investors anticipate for maintaining a portfolio of risky securities over safe assets.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield of government bonds.