Valid Measures Should Show Everything EXCEPT ______

question 44

Multiple Choice

Valid measures should show everything EXCEPT ______.

• A) a close relationship to similar measures
• B) no relationship to dissimilar measures
• C) precise wording
• D) inaccurate information

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Definitions:

Stock Market

A public market for buying, selling, and trading company shares and securities.

Long-term Real Rate

The interest rate on a long-term loan or investment, adjusted for the effects of inflation, reflecting the real cost of borrowing or the real yield on an investment.

Bonds

Fixed-income securities where an investor loans money to an entity (corporate or sovereign) which borrows the funds for a defined period of time at a variable or fixed interest rate.

Average Rate Of Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.