What are the two components of the investor's required rate of return?
What will be an ideal response?
The risk-free rate of return is the required rate of return, or discount rate, for riskless investments. Typically, our
measure for the risk-free rate of return is the U.S. Treasury bill rate. The risk premium is the additional return we must
expect to receive for assuming risk. As the level of risk increases, we will demand additional expected returns. Even
though we may or may not actually receive this incremental return, we must have reason to expect it; otherwise, why
expose ourselves to the chance of losing all or part of our money?
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If the stakes are high for you or your receiver, use a(n) ________ to deliver negative information
A) direct approach B) irregular approach C) indirect approach D) topical approach E) persuasive approach
A new market opportunity generally guarantees success, if the new product is technically feasible
Indicate whether the statement is true or false
One rule of thumb mentioned in the text is that your home purchase should price equal about
A) two and one-half times your after-tax income. B) four times your after-tax income. C) five times your after-tax income. D) ten times your after-tax income.
_____ is the process of continually collecting information from the external marketing surroundings.
A. Globalized marketing B. Target marketing C. Environmental scanning D. Market segmentation