For a Creativity Test to Have a High Degree of Content

question 308

True/False

For a creativity test to have a high degree of content validity, it should measure various kinds of creativity, such as artistic, verbal, mechanical, and mathematical creativity.

---

Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks. It is widely used for pricing risky securities.

Market Rate

The prevailing interest rate available in the marketplace on investments, loans, and deposits.

Expected Rate

Expected Rate often refers to the return that investors anticipate earning on an investment over a certain period.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, often represented by the yield on government bonds.