A Test Item with P =

question 34

Multiple Choice

A test item with p = .80 and D = .40 is:

• A)relatively easy and discriminates well.
• B)relatively easy and does not discriminate well.
• C)relatively difficult and does discriminate well.
• D)relatively difficult and does not discriminate well.
• E)of intermediate difficulty and does not discriminate well.

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Definitions:

Financial Leverage

Utilizing borrowed money to enhance the possible gains from an investment.

Tax Rate

The proportion of tax that an individual or business must pay on their earnings.

ROE

Return on Equity; a measure of the profitability of a business in relation to the equity, calculated as net income divided by shareholder equity.

Assets

Resources owned by a company that have economic value and can be converted into cash, including but not limited to property, plant, equipment, and intellectual property.