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For Many Years, a Financial Investment Firm Focused on Cognitive

question 176

Essay

For many years, a financial investment firm focused on cognitive intelligence to promote the best employees into management positions. These people proved to be very good at derivatives and other forms of financial analysis. Now, some executives believe that the investment firm should promote people into management based more on their emotional intelligence. Explain why emotional intelligence might be a good (or better) predictor of management ability than the employee's cognitive intelligence.


Definitions:

Compounded Monthly

A method where interest is calculated and added to the principal balance each month, leading to interest earning interest over time.

Annual Effective Rate

The interest rate on a loan or investment, adjusted for compounding over a one-year period.

Monthly

Occurring, produced, or done every month.

Semi-Annually Compounded

Interest calculation method where the interest is added to the principal on a half-yearly basis.

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