Which of the Following Best Describes Personality Tests

question 9

Multiple Choice

Which of the following best describes personality tests?

• A) They easily demonstrate job-relatedness.
• B) They can inadvertently discriminate against individuals who would otherwise perform effectively.
• C) They measure intelligence.
• D) They measure an applicant's preference for certain activities over others.

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Definitions:

Business Cycle Risk

The exposure to fluctuations in the economic cycle, which can impact the performance and profitability of businesses in different sectors.

Momentum

An investment strategy that aims to capitalize on the continuance of existing trends in the market.

Fama-French Three-factor Model

A model designed to describe stock returns through three factors: market risk, value vs. growth, and company size.

Default Spread

The additional yield that investors demand for holding a corporation's debt over a risk-free security, compensating for the risk of default.