Why Is Age a Common Demographic Category Used in Understanding

question 87

Multiple Choice

Why is age a common demographic category used in understanding consumer behavior?

• A) Different age groups have different needs and wants.
• B) Age is easier to categorize than gender.
• C) Generational groups tend to be similar.
• D) all of the above

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Definitions:

Risk-Adjusted Rate

A rate of return that has been adjusted to take into account the risk or volatility of the investment, providing a more accurate measure of its potential reward.

Risk Aversion

A preference to avoid uncertainty, characterized by investors' tendencies to prefer safer investments over more risky ones.

Portfolio Theory

A financial model that describes how to assemble a diversified portfolio to maximize returns and minimize risk based on expected returns and the variance of each asset.

Capital Budgeting

The process by which investors and managers evaluate the long-term investments and projects of a company in terms of their potential profitability and benefits.