A Stock Went Public at $15 and Closed at $17

question 10

Multiple Choice

A stock went public at $15 and closed at $17.70. What was the underpricing percentage?

• A) 15 percent
• B) 17 percent
• C) 18 percent
• D) 17.70 percent
• E) 15.25 percent

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Definitions:

Criterion-related Validity

The extent to which a measure is associated with an external criterion or outcome, assessing the test's predictive or concurrent accuracy.

Content Validity

The extent to which a test measures all aspects of the concept it intends to measure.

Criterion-related Reliability

A measure of how well a test predicts or correlates with a specific outcome or behavior, used to assess the validity of the test for specific purposes.

Construct Validity

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