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Could Trait Theory Be Used as a Basis for Market

question 16

Essay

Could trait theory be used as a basis for market segmentation? Explain why or why not, using two traits to illustrate support for your position.


Definitions:

Expected Return

The average return an investor anticipates receiving on an investment, considering all potential outcomes.

Expected Return

The potential return on an investment, taking into account both the probability of gains and the risk of loss.

Portfolio

A diversified collection of investments held by an individual or institution, including stocks, bonds, real estate, and other assets.

Cyclical Stock

A stock that's price is affected by macroeconomic or systematic changes in the overall economy, typically performing well during economic expansions and poorly during contractions.

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