Regarding Aptitude Tests, Which of the Following Statements Is TRUE

question 389

Multiple Choice

Regarding aptitude tests, which of the following statements is TRUE?

• A) Aptitude tests assess a person's interests and matches them to interests found among successful workers in various occupations.
• B) Aptitude tests present realistic work situations to applicants in order to observe their skills and reactions.
• C) Aptitude tests involve testing procedures that simulate the decision-making challenges faced by everyday people on various jobs.
• D) Aptitude tests rate a person's potential to learn skills required by various occupations.

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Definitions:

P/E Ratios

The Price-to-Earnings Ratio, a valuation metric comparing a company's current share price to its per-share earnings, used to evaluate stock price reasonableness.

Ceteris Paribus

A Latin term meaning "all other things being equal," used in economics to isolate the effect of one variable by holding others constant.

Expected ROE

The anticipated return on equity, predicting future profitability by estimating the rate of return on shareholders' equity.

Multistage DDM

A version of the Dividend Discount Model which assumes dividends grow at different rates in different stages of a company's life.