The Most Meaningful Way to Consider Test Validity Is

question 122

Multiple Choice

The most meaningful way to consider test validity is

• A) across parallel forms.
• B) as a subtype of reliability.
• C) for a specific purpose.
• D) in terms of errors of measurement.

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Definitions:

Benchmark

A standard or point of reference against which the performance of a security, mutual fund, or investment manager can be measured.

Management Fee

A charge paid to a company's managers for their services, often a percentage of managed assets or profits.

Net Return

The profit or loss from an investment after all expenses, including taxes, fees, and costs, have been subtracted.

Market Neutral

An investment strategy aiming to achieve returns independent of the overall market direction by simultaneously buying assets expected to rise and shorting assets expected to fall.