The State of Alabama Board of Tourism Ran a Series

question 10

Multiple Choice

The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state.Since the apparent target of these ads is traditional families, it appears the State of Alabama Board of Tourism has segmented the market using __________ variables.

• A)regional
• B)demographic
• C)socioeconomic
• D)geographic
• E)psychographic

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Definitions:

Cost of Equity

The return that investors expect for their investment in a company's equity, representing the compensation for the risk taken.

Market Risk Premium

The excess return that investors require from an investment in the stock market over a risk-free rate. This premium compensates investors for taking on the higher risk of investing in stocks.

Risk-Free Rate

The theoretical rate of return on investment with zero risk of financial loss, often represented by government bonds.

Expected Dividend

The dividend payment a shareholder anticipates receiving, based on the company's past dividend history or announcements.