Use the Table for the Question(s)below

question 58

Multiple Choice

Use the table for the question(s) below.
Consider the following investment alternatives:
-Which alternative offers you the highest effective rate of return?

• A)Investment A
• B)Investment B
• C)Investment C
• D)Investment D

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Definitions:

Construct Validity

The degree to which a test or instrument measures the theoretical construct it is intended to measure.

Face Validity

The extent to which a test or instrument appears to measure what it is supposed to measure, based on a superficial assessment.

Third-variable Problem

A confounding issue in research that occurs when a seemingly causal relationship between two variables is actually caused by an unseen, third variable.

Talkativeness

The quality or state of being inclined to talk a lot or engage in conversation frequently.