When mark buys groceries he prefers certain products simply because the products have a familiar brand name. his preference best illustrates the importance of the mere exposure effect.
One must examine the effects it has to define the mere exposure effect. When you hear music on the radio for the first time and despise it, that is an example of the simple exposure effect. However, after hearing it enough times, you start to like it. You start to think you like the song despite your initial dislike because you start to become more conscious of the tune, lyrics, etc. You might end up liking the song even more in the long run than you did at first.
Simply because you are familiar with something, you tend to like it more, which is the psychological definition of the mere exposure effect, also known as the familiarity principle. This effect can affect how you feel about people, things, songs, TV shows, and pretty much anything else you might encounter repeatedly. The mere exposure effect, which is defined as people liking something more because they are familiar with it rather than for any other compelling reason, is a crucial component.
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Answer: $67600
Explanation:
Using the flow-to-equity method of valuation, the amount borrowed will be calculated thus:
NPV = $157000
Add : Initial investment = $640000
Present value of cash inflow = $797000
Less : Present value of Levered cash flow = $729400
Amount borrowed = $67600
Therefore, the amount borrowed is $67600.
Answer:
to start up stocks and get yourself out there in the marketing world
Answer:
The answer is $199
Explanation:
Solution
Given that:
There is fair chance of 10% of you involving in an accident.
The damage incurred is =$1990
There is 90% chance that nothing will happen'
Utility function U (1)√1
Now,
We find the fair price of this policy
A fair premium is the amount that enables insurance company to break exactly even. that is to say
economic zero profit = expected costs.
Thus,
EC =p * (The loss of income if the accidents take place) + 1- p (The income loss when accidents foes not take place)
EC = 0.1 ($1990) + 0.9 (0) =
EC = $199 + 0 = $199
Therefore, the fair price of this policy is $199
