Which of the Following Should NOT Be Asked on an Application

question 41

Multiple Choice

Which of the following should NOT be asked on an application form?

• A)Application date
• B)References
• C)National origin
• D)Ability to do the job

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Definitions:

Active Portfolio

In the context of the Treynor-Black model, the portfolio formed by mixing analyzed stocks of perceived nonzero alpha values. This portfolio is ultimately mixed with the passive market-index portfolio.

Nonsystematic Variance

The portion of an investment's variance that is attributable to the investment's specific factors, as opposed to the overall market movement.

Market Index

A market index is a hypothetical portfolio of investment holdings which represents a segment of the financial market.

R-squares

A statistical measure in finance that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.