SUP ATX, Based in Austin, Texas, Is the Largest Stand-Up

question 87

Multiple Choice

SUP ATX, based in Austin, Texas, is the largest stand-up paddle board maker that markets their products directly to consumers via their website. The SUP ATX mission is to spread the sport of stand-up paddle surfing from oceans to lakes and rivers around the world. Stand-up paddle surfing or boarding is a relatively new sport but is growing due to the relatively low price of the boards, ease in transportation and storage of the boards, and the fact that the sport provides a fun way to exercise and allows users to enjoy the outdoors. Which of the following would be the "best" target market for SUP ATX paddle board products?

• A) Active adults aged 24 to 40 who enjoy outdoor recreational activities
• B) High school students aged 15 to 18 who are looking for alternatives to traditional sports activities
• C) Sporting goods retailers such as Dick's Sporting Goods who are seeking new products to sell in their retail stores
• D) Professional surfers who compete in surfing competitions across the globe

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Definitions:

Risk Premium

The risk premium is the extra return above the risk-free rate that investors require to compensate for the risk of holding a risky asset.

Risk Aversion

The tendency of investors to prefer safer investments over riskier ones, indicating their reluctance to take on investments that carry a higher chance of losing value.

Beta

An indication of how much a stock's price fluctuates compared to the broader market.

Portfolio Returns

The overall gains or losses generated by a portfolio of investments over a specific period, assessing the effectiveness of investment choices.