Which of the Following Assessment Methods Does Not Have at Least

question 51

Multiple Choice

Which of the following assessment methods does not have at least moderately high validity?

• A) assessment centers
• B) job knowledge tests
• C) seniority
• D) work experience

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Definitions:

Single-Index Model

A financial model that describes the return of a security or portfolio as a linear function of the return of a single market index, accounting for both the market return and idiosyncratic factors.

Excess Returns

Returns on an investment that exceed the benchmark or risk-free return, indicating the extra value gained by taking on risk.

Index Model

A financial model that describes the return of a stock as a function of the return of a market index, plus residual factors unique to that stock.

Standard Deviation

A statistical measure of the dispersion or variability around the mean of a set of data points, often used to quantify the risk of an investment.