A Researcher Has Measured Fear of Crime by Asking the Subjects

question 5

Multiple Choice

A researcher has measured fear of crime by asking the subjects whether or not they were afraid of crime and by asking them to rate from 1 - 10 their own fear of crime.Which is the highest level of measurement that is illustrated by this example?

• A) nominal
• B) ordinal
• C) interval
• D) ratio

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Definitions:

Cost of Debt

The effective rate that a company pays on its current debt, which can include loans, bonds, and any other interest-bearing liabilities.

Market Risk Premium

The extra return expected by investors for holding a risky market portfolio instead of risk-free assets, reflecting the additional risk.

Dividend

The payment made by a corporation to an equity investor (stockholder).

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in capital budgeting to evaluate potential investments.