The What Went Wrong Feature in Chapter 11 Focuses on Ugobe

question 3

Multiple Choice

The What Went Wrong feature in Chapter 11 focuses on Ugobe, the company that made Pleo, a small robotic baby dinosaur. Ugobe failed primarily because it didn't establish a clear:

• A) positioning strategy
• B) branding strategy
• C) social media strategy
• D) financial strategy
• E) advertising strategy

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher than average market volatility.

Risk Premium

The additional return an investor requires for taking on a higher level of risk compared to a risk-free investment.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, often represented by government bonds in finance.

Market Rate

The prevailing interest rate available in the marketplace for investments of a similar risk and maturity.