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Leto [7]
3 years ago
14

If consumers really like an ad, __________. Group of answer choices their involvement in processing the ad may decrease classica

l conditioning is most likely to occur their positive feelings may transfer from the ad to the brand they may have fewer associations with the brand advertised source derogations may increase
Business
1 answer:
Andreas93 [3]3 years ago
7 0

Answer: Their positive feelings may transfer from the ad to the brand

Explanation:

According to the AFFECT TRANSFER HYPOTHESIS, when Customers really like an Ad due to its MESSAGE QUALITY and ADVERTISING CREDIBILITY, studies have found that they are likely to transfer their Affections (positive feelings) from the Ad to the brand that is associated with that brand which will ultimately increase purchase intentions. In other words, Consumers will want to buy more of that Brand.

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What is the var of a 10 million portfolio with normally distributed returns at the 5% VaR? Assume the expected return is 13% and
Kitty [74]

Answer and Explanation:

The computation is shown below:

1. VaR = Expected return - z × Standard deviation  

= 13% - 1.645 × 20%

= -19.90%

Therefore the option a is the correct answer.

2) Now the correlation coefficient is

Variance of the portfolio  = (weight of A × Standard deviation 1)^2 + (weight of B × Standard deviation 2)^2 + (2 × weight of A × weight of B × Standard deviation 1 × Standard deviation 2 × correlation 1 and 2)

3.80% = (60% × 24%)^2 + (40% × 18%)^2 + (2 × 60% × 40% × 24% × 18% × correlation 1 and 2)

So the correlation is 0.583

8 0
3 years ago
Diamond Boot Factory normally sells its specialty boots for $35 a pair. An offer to buy 110 boots for $29 per pair was made by a
Marat540 [252]

Answer:

Since there is no loss occur from these sales and rather $15 per pair is profit from the sale of boots. So it should be accepted.

Explanation:

Now the calculation of differential income or loss per pair of boots from selling to the organization,

8 0
3 years ago
The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". A
Tems11 [23]

Answer: 6.49%

Explanation:

The constant rate of growth where the company would break even will be calculated thus:

Initial investment = Net cash inflow / (14% - g)

759000 = 57,000/(0.14 - g)

where g = growth rate

759000 = 57,000/(0.14 - g)

Cross multiply

759000(0.14 - g) = 57000

106260 - 759000g = 57000

759000g = 106260 - 57000

759000g = 49260

g = 49260/759000.

g = 0.0649

g = 6.49%

6 0
2 years ago
The treasurer of a major U.S. firm has $29 million to invest for three months. The interest rate in the United States is .29 per
7nadin3 [17]

Answer:

Check the following calculations.

Explanation:

The U.S. firm has $29 million

Investment is for three months

And the interest rate in the United States is .29 percent per month

The value of the investment if the money is invested in U.S

= $29 million *(1+ 0.29%) ^3

= $29.2530 million

The interest rate in Great Britain is .33 percent per month.

The spot exchange rate is £.629

And the three-month forward rate is £.632.

The value of the investment if the money is invested in Great Britain

Value after spot exchange = $29 million *(£.629/$1) = £ 18.241 million

Value after three months interest earning = £ 18.241*(1+0.33%) ^3

= £ 18.4222 million

Exchanging again in US $ after 3 months

= £ 18.4222 *($1/£ .632) = $29.1490 million

Therefore the value of the investment if the money is invested in Great Britain is $29.1490 million.

The value of investment will be more if the money is invested in U.S.

6 0
2 years ago
Builtrite had sales of $700,000 and cogs of $280,000. in addition, operating expenses were calculated at 25% of sales. builtrite
Leni [432]

This is the presentation of the income statement of Builtrite in order to compute the net income:

Sales                                                                                   $700,000

Less: COGS                                                                        $280,000

Gross Profit                                                                         $420,000

Less: Operating expenses ($700,000 x 25%)    $175,000

          Dividends expense                                   $25,000

          Capital loss                                               $70,000    $270,000

Total                                                                                     $150,000

Add: Dividend income                                         $40,000

          Capital gain                                               $55,000    $95,000

Net income                                                                           $245,000

3 0
3 years ago
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