Regarding Promotion Methods, Which of the Following Statements Is TRUE

question 186

Multiple Choice

Regarding promotion methods, which of the following statements is TRUE?

• A) Personal selling can provide immediate feedback.
• B) Publicity is "free," but usually is ineffective for really new products.
• C) Advertising is usually more tailored to the individual needs and attitudes of target customers than personal selling.
• D) Sales promotion activities produce results very slowly compared to advertising.
• E) All of these statements about promotion methods are TRUE.

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Definitions:

Market Risk Premium

This is the extra return expected by investors for holding a risky market portfolio instead of risk-free assets.

Security Market Line

A line that represents the risk versus expected return of the market; used to assess the performance of investments compared to the market.

Systematic Risk

The inherent risk associated with the overall market or economy that cannot be eliminated through diversification.

Expected Return

The anticipated return on an investment, calculated as the weighted average of all possible returns with the probabilities of their occurrence.