One of the Major Disadvantages Associated with the So-Called Special

question 60

Multiple Choice

One of the major disadvantages associated with the so-called special performance test is that it

• A) is a poor measure of worker ability.
• B) fails to measure the employees' work motivation.
• C) fails to provide standard evaluation conditions for the workers.
• D) is subject to recency effect.
• E) is prone to opportunity bias.

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Definitions:

Complete Portfolio

A diverse investment portfolio that covers a wide range of securities in order to mitigate risk through diversification.

Standard Deviation

A numerical index representing the variation or spread in a collection of data points or financial returns.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment portfolio, calculated by subtracting the risk-free rate of return from the portfolio's return and dividing by the portfolio's standard deviation of returns.

Risk-free Rate

The theoretical rate of return of an investment with zero risk, often represented by Treasury bills.