The Information in the Following Table Is to Be Used

question 13

Multiple Choice

The information in the following table is to be used to answer questions
$\begin{array}{|l|c|c|c|c|}\hline \text { Fund } & \text { Standard Deviation } & \text { Beta } & \begin{array}{c}\text { Jensen's } \\\text { Alpha }\end{array} & \mathbf{R}^{\mathbf{2}} \\\hline \text { Fund 1 } & 1.97 & 1.0 & 1.3 & 0.95 \\\hline \text { Fund 2 } & 2.97 & 0.8 & 0.6^{*} & 0.80 \\\hline \text { Fund 3 } & 3.82 & 1.2 & -3.5^{*} & 0.90 \\\hline \text { Fund 4 } & 3.50 & 1.4 & 4.2 & 0.65 \\\hline\end{array}$
-Based on Jensen's performance measure, which fund significantly outperformed?

• A) Fund 1
• B) Fund 2
• C) Fund 3
• D) Fund 4

Identify and differentiate between the types of validity (content, criterion, construct).

Recognize the role of factor analysis in determining the grouping of items in a test.

Understand the changes in the concept of validity across different editions of the Standards for Educational and Psychological Testing.

Describe methods for establishing evidence of content and construct validity.

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Definitions:

Prices

The sum of money anticipated, needed, or provided as payment for something.

Classical Dichotomy

The theoretical separation of nominal and real variables in the economy, suggesting that changes in the money supply only affect nominal variables and not real variables like output.

Monetary Neutrality

The economic theory suggesting that changes in the money supply only affect nominal variables and have no long-term effect on real variables such as output or employment.

Long-Run Aggregate-Supply Curve

The long-run aggregate-supply curve represents the total production of goods and services in an economy at different price levels, assuming all resources are fully utilized.