Which of the Following Statements Is FALSE

question 92

Multiple Choice

Which of the following statements is FALSE?

• A) Investments with higher volatility have rewarded investors with higher average returns.
• B) Investments with higher volatility should have a higher risk premium and, therefore, higher returns.
• C) Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios and the returns of individual securities.
• D) Riskier investments must offer investors higher average returns to compensate them for the extra risk they are taking on.

Comprehend the principle of concurrent validity and its implication for job performance evaluation.

Understand criterion-related validity and its significance in predicting work behavior.

Gain insights into geographical differences in employment practices, such as drug testing.

Distinguish between different traits measured in personality tests, such as conscientiousness.

---

Definitions:

Red-Circled

A term used to describe employees whose pay exceeds the maximum of their pay range, often due to changes in job structure or pay scale adjustment.

Pay Ranges

The scale of pay established for jobs of similar value or category within an organization, reflecting minimum and maximum pay rates.

Compensable Factors

Key job elements that are considered when determining the pay for a position, including skills, effort, responsibility, and working conditions.

Core Job Dimensions

Fundamental aspects of a job that affect an employee’s psychological states, influencing their motivation, satisfaction, and performance.