The Pricing strategy which Dream Homes implemented is known as Price lining (Option A) which categorized the prices accordingly with the financial soundness of the customers.
Explanation:
The demand for more goods always plays a vital role in ensuring good sales. The likes of the customers towards particular products depend upon the nature of unique features and its fine quality. By capturing the pulse of the purchasing power of the customers, the business ventures fixed the prices according to the level of economical weaker sections, middle, and high-income groups.
In this case, Dream Homes fix the price of freezers by measuring the ability of customers' to buy them without compromising with the customers requirements. Dream Homes uses the price lining method to gain customers' reputation by selling the products accordingly with their status of income level.
Answer:
<h2>Mission Statement</h2>
Explanation:
A brief description of a company's purpose is called mission statement, it tells about the company's purpose for the public and employees. It varies from company to company as because every company describes it differently.
A mission statement is important as it serves as a base line for everyone in the organisation. It serves as the basis for effective business planning. Mission statements are used in marketing as they are a company's public face. Companies also include them on their websites. A good mission statement can inspire, surprise and transform your business
Answer:
ex ante real interest rate.
Explanation:
According to Fisher effect the expected inflation rate will affect indices like nominal interest rate, current prices of goods, and the demand for money.
However it does not affect the ex ante real interest rate.
The Fisher effect shows how real interest rate is related to nominal interest rate.
Real interest rate = Nominal interest rate - Expected inflation rate
Ex ante real interest rate is the anticipated real interest rate in the future.
This is not considered in the Fisher effect
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Answer: b. The beta of the portfolio is higher than the highest of the three betas
Explanation:
The beta of a portfolio is calculated as a weighted average of the individual betas of the individual stocks. As such, the highest individual beta will be the upper limit of the portfolios entire beta.
For instance.
3 stocks A, B and C have betas of 1, 1.3 and 2 respectively.
A has a weight of 1%, B has a weight of 1% and C has a weight of 98%.
The portfolio beta will be;
= (0.01 * 1 ) + ( 0.01 * 1.3) + ( 0.98 * 2)
= 1.98
Even if the stock with the highest beta had an advantage of weighing such a high figure, it it mathematically impossible for the portfolio beta to be higher than it.
