You Want to Make Sure the Math Test You Give

question 6

Multiple Choice

You want to make sure the math test you give your students is reliable. You are afraid they can memorize facts so your test is all word problems. However, you now are concerned that you have hindered the validity of the test. It still looks like a math test, so which type of validity have you potentially violated?

• A) Content
• B) Consequential
• C) Predictive
• D) Construct

---

Definitions:

Holding-period Return

The cumulative return gained from owning an asset or collection of assets over a specific timeframe, usually represented as a percentage.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Complete Portfolio

An investment strategy that includes a diverse mix of assets to optimize risk and return.

Capital Allocation Line

A line in investment graph that shows the risk-reward profiles of various portfolios, combining a risk-free asset with a risky portfolio to maximize returns.