The reason is that the investor desires higher returns on the higher risk he takes. It is also evident from the Capital asset pricing model which says that the return demanded by the investor is equal to the return on the risk free investment and the risk premium. The investment in a portfolio of investments also affects the weighted average required return. Furthermore, the correlation coefficient of returns between investments must be inversely related so that the investor has a average return on the investment.
As sales managers of car dealerships, we need to create a plan to effectively target potential customers.
In order to effectively target potential buyers, we need to determine both demographic and behavioral data. With respect to demographics, it is important to have information about age, gender, and income levels so that we can consider former consumer trends. Getting this type of data helps our dealerships identify the consumer trends that best target our marketing campaigns. In addition to this data, monitoring our social media feeds also helps us gain insight into our automakers by providing us with demographics and behaviors.
There are various resources available to assist in the decision-making process, focusing on potential buyers. One specific source we want to use is Axion. Many people have experimented with FICO assessment. The company can be used by car businesses to help them focus on family units and performance insights by providing reliable data,