Other

Question 1

Market skimming pricing strategy

Answer 1

Market skimming pricing is used whnen a new product is introduced at the highest possible price given the benefits of the product. For market skimming to work, the product must appear to be worth its price, the costs of producing a small volume cannot be so high that the eliminate the advantage of charging more and competitors cannot enter the market and undercut the price.

Question 2

Short term securities issued by the federal housing administration are known as

Answer 2

Agency securities

Question 3

The risk of a single stock is

Answer 3

Security risk

Question 4

The risk of many stocks

Answer 4

Portfolio risk (includes diversifiable and undiversifiable risk)

Question 5

Market risk premium

Answer 5

Market Return - Risk Free Return

Question 6

Which level of corporate social responsibility is the most basic?

Answer 6

Economic

Question 7

A futures contract that is used protect a profit against price increases is an example of

Answer 7

a long hedge

Question 8

A futures contract that is sold to protect against price declines

Answer 8

a short hedge

Question 9

Allocating costs over a <> enhances earnings quality

Answer 9

shorter

Question 10

the financial markets that trade debt securities with maturities of less than 1 year and are dealer driven are

Answer 10

Money markets

Question 11

Payback reciporical

Answer 11

1 / payback time