An Index Has ______ When Component Items Are Closely Related

question 2

Multiple Choice

An index has ______ when component items are closely related.

• A) interitem reliability
• B) interitem validity
• C) extra-test validity
• D) measurement cohesion

---

Definitions:

Lockup Agreement

A contractual clause preventing company insiders, such as employees and investors, from selling their shares for a certain period following an initial public offering (IPO).

Underwriting Contract

An agreement between an underwriter and an issuer of securities, in which the underwriter agrees to buy and subsequently resell the issue of securities.

IPO

Initial Public Offering, the process through which a private company offers shares to the public for the first time to raise capital.

Allocation Percentage

The portion of an investment portfolio or fund dedicated to a specific asset class, sector, or individual security, usually expressed as a percentage.