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What Is the Purpose of a Performance Appraisal System? Explain

question 107

Essay

What is the purpose of a performance appraisal system? Explain how a good system works and how management uses the information obtained through this system.


Definitions:

Expected Return

The weighted average of the probable returns of an investment, where the weights correspond to the probability of each outcome.

Standard Deviation

A metric that quantifies the spread of a dataset around its mean, determined by taking the square root of the variance.

Risky Asset

An asset that has a significant degree of price volatility or the potential for financial loss.

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