Based on the Expectancy Theory, Managers Who Want to Motivate

question 18

Multiple Choice

Based on the expectancy theory, managers who want to motivate their employees should:

• A)determine the rewards valued by each employee
• B)link rewards to performance
• C)determine what factors might counteract the effectiveness of a reward
• D)make sure the rewards are adequate for the level of performance
• E)do all of the above

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Definitions:

Proxy Market Portfolio

A proxy market portfolio is a theoretical bundle of investments that represents a broad market segment, used in financial models to simulate the behavior of entire markets.

Security Market Line

A representation in financial theory that shows the relationship between risk and return for all securities in the capital markets.

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio compared to the market as a whole.

Regression Line

A line of best fit through a dataset in statistical analysis, showing the relationship between the independent variable and the dependent variable.