When You Write Multiple-Choice Items,you Should Use

question 99

Multiple Choice

When you write multiple-choice items,you should use

• A)as much wording as possible in the distractors.
• B)distractors that require fine discriminations.
• C)"none of the above" less frequently than "all of the above."
• D)stems that present a single problem.

---

Definitions:

Required Rates of Return

The minimum annual percentage earned by an investment that will persuade the individual or company to invest.

Security Market Line

A graphical representation that shows the expected return of assets as a function of their systemic risk, represented by beta.

Risk-Free Rate

The return on investment with no risk of financial loss.

Market Risk Premium

The excess return that investors require for choosing to purchase stocks over risk-free securities.