All of the Following Are True of Institutional Advertising Except

question 217

Multiple Choice

All of the following are true of institutional advertising except

• A) focuses on the name and prestige of an organization or industry.
• B) seeks to inform, persuade, or remind.
• C) tries to keep the product's name before the public.
• D) develops goodwill or improves an organization's relations with various groups.
• E) advocates a specific cause or idea.

---

Definitions:

Security Market Line

A graphical representation in the Capital Asset Pricing Model that shows the relationship between the expected return of an investment and its beta, representing risk.

APT

Stands for Arbitrage Pricing Theory, a model that predicts a security's returns using the linear relationship between its expected return and macroeconomic factors.

Factor Intensity

The measure of how much of a certain factor of production (labor, capital, etc.) is used in the production of a good or service.

APT Model

Arbitrage Pricing Theory Model, an alternative to the Capital Asset Pricing Model (CAPM), asserts that the expected return of a financial asset can be modeled as a linear function of various macro-economic factors or theoretical market indexes.