Dr Searman Compares the Scores on a New Intelligence Test

question 126

Multiple Choice

Dr. Searman compares the scores on a new intelligence test to the students' grades in school in order to establish the test's

• A)test-retest reliability.
• B)equivalent-forms reliability.
• C)content-construct validity.
• D)criterion validity.

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Definitions:

Reward

Typically refers to the potential gains or returns derived from an investment or action, balanced against the risk involved.

Volatility

The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.

Portfolio Excess Return

The return on an investment portfolio that exceeds the return of a benchmark or risk-free asset.

Standard Deviation

A statistical measure of the dispersion of a set of data from its mean, used in finance to quantify the volatility of investment returns.