Morningstar Mutual Funds Analyzes the Risk and Performance of Mutual

question 19

Multiple Choice

Morningstar Mutual Funds analyzes the risk and performance of mutual funds.Each mutual fund is assigned an overall rating of one to five stars.One star is the lowest rating, and five stars is the highest rating.This level of measurement is __________.

• A)ordinal level
• B)interval level
• C)nominal level
• D)ratio level
• E)relative level

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Definitions:

Validity

Accuracy; the extent to which a test or other measuring instrument measures what it is supposed to measure.

Reliability

The extent to which a test or other measuring instrument yields consistent results.

Self-report

A method of gathering data in which individuals provide information about themselves, often used in surveys and questionnaires.

Selye's Theory

A concept introduced by Hans Selye that defines stress as a nonspecific response of the body to any demand placed upon it, highlighting stages like alarm, resistance, and exhaustion.