20

Limited decision making is used when purchasing frequently bought, low-cost items needing very little decision effort.

Kay [80]

Answer:

True

Explanation:

Routinized response behavior is the decision making process used by consumers when they buy frequently purchased, low cost items that require very little search and decision effort.

Convenience goods are low cost goods that are purchased frequently with very little search and decision effort, e.g. candy, cold drinks, etc.

5 0

4 years ago

A particular security's default risk premium is 3 percent. For all securities, the inflation risk premium is 2.75 percnt and

grandymaker [24]

The calculated value of security's equilibrium rate of return is 12.35%.

Here, security's equilibrium rate of return:

= Real interest rate + inflation risk premium + default risk premium + liquidity risk premium + maturity risk premium

ij* = 2.75% + 5.50% + 3.00% + 0.25% + 0.85%

= 12.35%

Risk Premium & Security's Equilibrium Rate of Return:

Security's equilibrium rate of return is the return required by investors from investment in the security. The equilibrium rate of return is calculated by adding the risk-free rate to the sum of all risk premiums consisting of default risk, liquidity risk, maturity risk and inflation risk.

The inflation risk premium :

is a measure of the premium investors require for the possibility that inflation may rise or fall more than they expect over the period in which they hold a bond.

What is the formula of risk premium?

The estimated return minus the return on a risk-free investment is equal to the risk premium. For example, if the estimated return on an investment is 6 percent and the risk-free rate is 2 percent, then the risk premium is 4 percent.

What is security equilibrium?

Briefly, the requirement for a security equilibrium is that it is "common. knowledge" that no player will settle for a payoff, under any contingency, which is less. than his security level given the occurrence of that contingency.

The question is incomplete. Missing part of question is:

the real risk-free rate is 5.50 percent. The security's liquidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the security's equilibrium rate of return

Learn more about security equilibrium rate of return :

brainly.com/question/8873408

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7 0

2 years ago

Firms use a differentiated targeting strategy because it is better than focusing on individual or small groups of potential cust

hoa [83]

Answer:

The correct option is:

It helps obtain a bigger share of the market.

Explanation:

Differentiated strategy is helpful to get bigger shares of the market. Hence, the firms are generally used this strategy. Therefore, 2nd option is correct and remaining options are incorrect.

Differentiated strategy:

It's an approach that a business takes to develop a unique product or service that customers will find better than or in another way distinctive from products or services offered by competitors.
Differentiation strategy is a way for a business to distinguish itself from the competition.
If successful, it allows the business the opportunity to charge a premium for the good or service. Keep in mind, however, that the business often encounters higher costs to offer the unique product or service and thus, needs to be successful in attracting customers to cover that extra cost.
The company will be able to obtain a bigger share of the market.

3 0

3 years ago

ENG-114-02E-2022SP-Prof Research & Reporting

Hunter-Best [27]

ENG-114-02E-2022SP-Prof Research & Reporting involves teaching professional communication skills.

<h3>What is Communication?</h3>

This is the act of exchanging information through different types of medium such as writing etc.

The course above is taught with the use of articles reviewed by peers for as better understanding of how to communicate better in this type of scholarly environment.

Read more about Communication here brainly.com/question/26152499

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4 0

2 years ago

This is calculated by dividing the net profits by net sales.

Triss [41]

Answer:

Profit margin

Explanation:

Profit margin = Net profits / Net sales

Company can earn insight into a company's earnings by looking at its sales strategy, pricing structure, and productivity improvements using net profit margin.

3 0

3 years ago