A Reliable Measure Is One That

question 13

Multiple Choice

A reliable measure is one that:

• A)produces a consistent result if the same thing is measured twice.
• B)measures what it was intended to measure.
• C)predicts actual behavior.
• D)co-varies with the independent variable.

---

Definitions:

Interest-Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates, which can affect both debt and equity instruments.

Bond Portfolio Managers

Professionals who specialize in the strategic management of bond portfolios, aiming to maximize returns and minimize risks for investors.

Active

In finance, refers to a management strategy involving regular buying and selling of assets to outperform the market, opposite of passive strategies like indexing.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value, to its holders.