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Usage Segmentation Studies Psychographic Variables for Segmenting Customers on the Internet

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Usage segmentation studies psychographic variables for segmenting customers on the internet.


Definitions:

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Beta

A gauge of the variability in a stock's price relative to the whole market.

Risk-Free Rate

The anticipated rate of return on an investment devoid of risk, commonly represented by the interest rates of government bonds.

Market Risk Premium

The extra return expected by investors for holding a risky market portfolio instead of risk-free assets, reflecting the additional risk.

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