What Is the Best Reason to Expect That Observer Reports

question 15

Multiple Choice

What is the best reason to expect that observer reports of personality could in some cases be more valid than self-reports would be?

• A)Observers will see the person's behavior in only a limited range of settings,which makes it easier to provide accurate reports.
• B)Observers are not necessarily aware of the person's thoughts and feelings,which makes it easier to provide accurate reports.
• C)Observers might have a more objective perspective on the person's personality than he or she does,which makes it easier to provide accurate reports.
• D)Observers can compare the person with other people,which makes it easier to provide accurate reports.
• E)None of the above

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Definitions:

Equity Capital

Funds raised by a company through the sale of common or preferred stock.

Cost of Capital

The necessary return rate on investments a firm must attain to keep its market price stable and appeal to investors.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in the context of evaluating investment opportunities.