Some Organizations Are Using Ability or Aptitude Assessment Instruments to Determine

question 37

Multiple Choice

Some organizations are using ability or aptitude assessment instruments to determine future performance in certain types of sales jobs.Experts in the field of employment testing say test scores:

• A)can be helpful.
• B)should not be considered because of possible legal problems.
• C)can be very misleading to the employer,so they should not be used.
• D)indicate what true future behaviour will be.
• E)can be helpful when used in conjunction with other criteria.

---

Definitions:

Sharpe Measure

A method used to evaluate the risk-adjusted return of an investment, comparing the excess return (over a risk-free rate) to the standard deviation of returns.

S&P 500 Index

A stock market index in the United States composed of the market values of 500 major companies listed on either the New York Stock Exchange or NASDAQ.

Time-Weighted Return

A method of calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing solely on the performance of the investments themselves.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, divided by the volatility of those returns.