When a Firm Looks for New Users in Groups That

question 32

Multiple Choice

When a firm looks for new users in groups that might use the product but do not, the firm is using the ________ strategy.

• A) new-market segment
• B) market-penetration
• C) geographical-expansion
• D) product development
• E) diversification

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Definitions:

Risky Securities

Financial instruments carrying a higher potential for loss, often offering greater potential returns to compensate for the increased risk.

Portfolio Variance

A measure of the dispersion of returns of a portfolio, calculated as the weighted average of the covariance of each asset in the portfolio.

Coefficient of Correlation

A statistical measure that indicates the degree to which two variables move in relation to each other, ranging from -1 to 1.