The CES-D Is Considered a Reliable Composite Measure Because

question 24

Multiple Choice

The CES-D is considered a reliable composite measure because

• A)the alpha score when used in the National Longitudinal Study of Adolescent Health (ADD Health)is 0.87.
• B)the items are not used on any other scale-they are unique to the CES-D.
• C)people's responses to one item on the CES-D do not seem to predict their responses to other items.
• D)the items on the CES-D are relatively new and have not been used in many different studies.

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Definitions:

Common Equity

The amount of ownership interest in a corporation, represented by common stock held by investors.

Preferred Shares

Type of equity security that offers dividends and other benefits before common stockholders are compensated, often with no voting rights.

Rate of Return

The rate of return is the percentage of gain or loss on an investment over a specified time period, comparing the initial investment cost to the final value.

Floatation Costs

Fees and expenses associated with issuing new securities in the market, including underwriting, legal, registration, and printing fees, which can impact the net proceeds to the issuer.