Which of the Following Is an Important Weakness of 360

question 94

Multiple Choice

Which of the following is an important weakness of 360 feedback?

• A) In cases where feedback is not positive, it has been shown to increase voluntary turnover.
• B) It is hard to know what to conclude if the appraisal results in conflicting opinions.
• C) The quality of information is not as good as other types of appraisal systems.
• D) The training can be demoralizing because it is so intense.

Gain knowledge on the use of Sharpe, Treynor, Jensen, and information ratio measures to evaluate investment performance.

Calculate and analyze the performance measures of mutual funds and individual stocks.

Understand the impact of asset allocation and selection within markets on the total abnormal return of an investment.

Distinguish between arithmetic average return and geometric average return.

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Definitions:

Compound Leverage Factor

A measurement used to describe the magnification of risk and return caused by using borrowed money or financial derivatives within an investment.

Financial Leverage

The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.

Operating Leverage

A financial ratio that measures the proportion of fixed costs in a company's cost structure, indicating how a change in sales volume will impact operating income.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by subtracting a firm's cost of capital from its operating profit.