Which Statement Is True About Correspondence Analysis

question 20

Multiple Choice

Which statement is true about correspondence analysis?

• A)The interpretation of results is similar to that in chi-square analysis.
• B)An advantage over other MDS techniques is that it reduces the data collection demands put on the respondents because only interval or ratio data are obtained.
• C)A disadvantage is that between-set distances cannot be meaningfully interpreted.
• D)All of the statements are true.

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Definitions:

Illiquidity Premiums

Additional return expected by investors for holding assets that are difficult to trade quickly without significant price concessions.

Systematic Risk Factors

Events or conditions that affect all assets to some degree, such as macroeconomic changes, geopolitical incidents, or widespread financial crises.

Trading Costs

Expenses associated with buying and selling securities, including commissions, spreads, and impact costs.

Perpetual Cash Flow

A stream of cash flows that continues indefinitely, often used in financial modeling to value businesses or investments with steady, ongoing income.