You Are a Retired Worker Whose Income Is Derived from Your

question 14

Multiple Choice

You are a retired worker whose income is derived from your company pension plan and social security.However,you are highly dependent upon the income generated from your 401(k) plan,which is heavily weighted in stocks that pay substantial dividends.Which of the following dividend policies would you prefer?

• A)constant dividend payment ratio
• B)stable dollar dividend per share
• C)small,regular dividend plus a year-end extra
• D)any of the above would be equally desirable

---

Definitions:

Predictive Validity

Predictive validity refers to the extent to which a score on a scale or test predicts future behavior or outcomes.

IQ Test

A uniform test intended to evaluate a person's intelligence and cognitive capacities.

Predictive Validity

How well a rating on an examination or metric anticipates subsequent success in a similar endeavor.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.