Use the Table for the Question(s)below

question 53

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-Suppose an investment is equally likely to have a 35% return or a -20% return.The expected return for this investment is closest to:

• A)7.5%.
• B)15%.
• C)5%.
• D)10%.

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Definitions:

Market Segmentation

The process of dividing a target market into smaller, more defined categories of consumers who share similar characteristics and needs.

Demographic Segmentation

The process of dividing a market into segments based on variables such as age, gender, income, education, or ethnicity.

Personal Factors

Individual characteristics such as age, income, education, and personal values that influence a person's behavior and decisions.

Consumer Behavior

The study of how individual customers, groups, or organizations select, buy, use, and dispose goods, services, ideas, or experiences to satisfy their needs and desires.