The Type of Validity That Focuses on the Extent to Which

question 37

Multiple Choice

The type of validity that focuses on the extent to which the test relates to future performance is referred to as _________ validity.

• A) predictive
• B) concurrent
• C) content
• D) construct

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Definitions:

Market-Value Weighted

An indexing method where the weight of each constituent security in an index or portfolio is based on its total market capitalization, favoring larger companies.

Dow Jones Industrial Average

A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Fixed-Income Market

This market encompasses investments that pay a fixed return over a period, such as government and corporate bonds.