Destiny Recently Completed the Artistic Reasoning Test (ART) for the Third

question 115

Multiple Choice

Destiny recently completed the Artistic Reasoning Test (ART) for the third time in four months. The first time he took the test, his score was near the middle of the scale. The second time, he scored near the top of the scale; but for the most recent test, he scored near the bottom of the scale. Destiny's scores for this test indicate that the test

• A) is measuring something other than Artistic Reasoning Skills.
• B) has low reliability.
• C) has not been properly standardized.
• D) has poor construct validity.

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Definitions:

M&M Proposition I

A principle of corporate finance stating that in a world without taxes, transaction costs, and bankruptcy costs, and in an efficient market, a firm's value is unaffected by its financing decisions.