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Describe the steps involved in the market segmentation process.
Constant-Growth DDM
A model that calculates a stock's value by assuming dividends will increase at a steady rate forever, known as the dividend discount model with constant growth.
Beta
A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market.
Dividend
A portion of a company's earnings that is paid to shareholders, typically on a regular basis.
Risk-Free Rate
The expected profit from an investment that carries no chance of financial loss, typically shown by the interest rate on governmental bonds.
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