With the Aim of Solving Some Recent Employee Thefts,an I/O

question 4

Multiple Choice

With the aim of solving some recent employee thefts,an I/O psychologist administers a test that's supposed to show how honest employees are.He's not skilled in interpreting this test.Although the employees believe the test to be anonymous,he keeps track of their scores and informs management which two scored lowest on the test.They are fired.How would his behavior be evaluated in the context of the six ethical principles governing I/O psychologists?

• A)He has behaved unethically by doing something he was not competent to do,interpreting the test.
• B)He has behaved unethically by violating the confidentiality of the employees' results.
• C)He has behaved unethically by harming others through his professional work.
• D)All of the above are true.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

Yield to Maturity

The anticipated full income on a bond, provided it is held through to its expiration date.

Interest Rate Risk

The risk of losing money on investments because of changes in interest rates.

Zero Coupon Bond

A debt security that does not pay periodic interest (coupon) payments and is instead issued at a substantial discount to its face value, with the return being the difference between the purchase price and the face value at maturity.