Exploratory Factor Analysis Is Used for All of the Following

question 127

Multiple Choice

Exploratory factor analysis is used for all of the following EXCEPT:

• A) summarizing large data sets efficiently.
• B) determining the number of dimensions present in the data.
• C) determining which items correlate with which dimensions in the data.
• D) determining whether one factor causes the appearance of another.

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Definitions:

Investment Opportunities

Options available to individuals and firms to invest capital with the intent to generate returns.

Bargain Purchases

Acquisitions made at a price significantly below the fair market value of the asset, resulting in an immediate gain for the purchaser.

Dividend Capture

A strategy in which an investor purchases securities to own them on the day of record and then quickly sells them; designed to attain dividends but avoid the risk of a lengthy hold.

Securities

Securities that signify ownership in a corporation listed on the stock market, a debt obligation with a government entity or company (bond), or entitlements to ownership through an option.