A Major Difficulty with the Factor-Comparison Method Is That Subjective

question 9

True/False

A major difficulty with the factor-comparison method is that subjective judgments are needed to develop the class descriptions and to place jobs accurately in them.

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Definitions:

Bid-Ask Spread

The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for an asset.

Dealers

Individuals or entities that act as principals in buying and selling securities for their own account.

Market Inefficiencies

These are situations where the current price of a security does not fully reflect all available information, potentially allowing investors to earn above-average returns.

Ask Price

The minimum price a seller is willing to accept for an asset or security.