The best way to describe how that idea was recognized is <u>"finding a gap in the marketplace".</u>
Numerous organizations need to find the gap in the market. The gap in the market is a particular region. A zone where you can command. A region where are little conceivable outcomes for another person to surpass your mastery. On the off chance that you prevail to discover a specialty where you are the just a single, at that point it is extraordinary for your enterprising profession. But, likewise it is extraordinary on the off chance that you can discover a space where you will be the one of a kind player in an established market. The market where competition is low.
Conducting market research on your target audience before building a marketing plan allows you to understand your customers/clients and their needs. By completing a marketing plan that includes demographical research as well as spending and purchasing goals and plans, you can understand how to adjust each of the 4 Ps (Price, Place, Promotion, and Product) to create value for your customers and differentiate your product in the marketplace.
Answer:
The expected return on this stock is 11.38%.
Explanation:
We apply the Capital Asset Pricing Model (CAPM) to solve the problem.
Under the CAPM, we have:
Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate).
in which:
Risk-free rate is given at 3.1%;
Beta is given at 1.15;
Return on Market is given at 10.3%;
So:
Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate) = 3.1% + 1.15 * ( 10.3% - 3.1%) = 11.38%.
Thus, the answer is 11.38%.
