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If There Is a Substantial Correlation Between Test Scores and Job-Performance

question 8

Multiple Choice

If there is a substantial correlation between test scores and job-performance scores,________ validity has been established.


Definitions:

Beta

An indicator of how much a stock's price fluctuates compared to the general market, representing its relative risk.

Risk-Free Rate

The expected yield on an investment that is considered completely risk-free, often linked to government securities.

Market Risk Premium

The additional return expected by investors for taking on the risk of investing in the stock market over a risk-free investment.

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