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Compare and Contrast Social Validity and Empirical Validity

question 9

Essay

Compare and contrast social validity and empirical validity. What do these concepts have in common? How are they different?


Definitions:

Reward To Risk

The ratio that compares the potential profit of an investment to its potential loss.

Beta

An indicator of how much a stock fluctuates in comparison to the general market, with a beta greater than 1 signifying that the stock has higher volatility than the market.

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