A Performance Appraisal System in Which Managers Are Evaluated by Everyone

question 39

Multiple Choice

A performance appraisal system in which managers are evaluated by everyone around them-their boss, their peers, and their subordinates is known as _____.

• A) employment at will
• B) 360-degree feedback
• C) source monitoring
• D) job evaluation
• E) job specialization

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Definitions:

Diversification

Diversification is an investment strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce risk.

Risk Premium

The extra return above the risk-free rate that investors demand as compensation for the risk of an investment.

Systematic Risk

The risk inherent to the entire market or market segment, unavoidable through diversification.

Security Market Line

A line that represents the relationship between the risk of an investment and its expected return, based on the capital asset pricing model (CAPM).