The Concept That Employees Should Exert Greater Work Effort If

question 52

Multiple Choice

The concept that employees should exert greater work effort if they have reason to expect it will result in a valued reward forms the basis of

• A)expectancy theory.
• B)equity theory.
• C)instrumentality.
• D)internal equity.

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Definitions:

Comparison Universe

A set of similar investment options or benchmarks used for evaluating the performance or characteristics of a specific investment.

Jensen Measure

A performance evaluation method that measures the excess returns a portfolio generates over its expected return, given its level of market risk.

Absolute Measure

A term used in finance to describe a statistical measure that is not relative but quantifies an actual amount or change.

CAPM

The Capital Asset Pricing Model, a theory used in finance to determine a theoretically appropriate required rate of return of an asset, considering risk and the time value of money.