SCENARIO 4-3 Marjo Is the Manager of a Grocery Store That Is

question 68

Multiple Choice

SCENARIO 4-3
Marjo is the manager of a grocery store that is part of a larger supermarket chain.She would like to implement a goal-setting program for the cashiers,assistant manager,and the managers in the bakery,produce,and meat departments.The staff have asked her to explain the goal-setting program,how it will work,and how it will affect them.

-Referring to SCENARIO 4-3,an example of an effective goal would be

• A)telephone orders will be processed promptly.
• B)the quality of all products will increase substantially and immediately.
• C)sales will increase by 2 percent over the next 6 months.
• D)company costs will decrease as much as possible.
• E)new customers will be brought in regularly.

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Definitions:

CAPM

The Capital Asset Pricing Model, which describes the relationship between systematic risk and expected return for assets, particularly stocks, suggesting that investors need to be compensated in two ways: time value of money and risk.

Fama and French

Scholars who developed a three-factor model for explaining the risk and return of stocks and other investments.

Econometrics

The application of statistical and mathematical theories to economics for the purpose of testing hypotheses and forecasting future trends.

Asset Betas

Measure the sensitivity of an asset's returns to market returns, representing the systematic risk of assets not attributable to market-wide movements.