Which Statement Is Not True Regarding the Relationship Between Reliability

question 52

Multiple Choice

Which statement is not true regarding the relationship between reliability and validity?

• A) If a measure is perfectly valid,it is also perfectly reliable.
• B) Reliability is a necessary,but not sufficient,condition for validity.
• C) If a measure is perfectly reliable,it is perfectly valid.
• D) Unreliability implies invalidity.

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Definitions:

Zero Coupon Bond

A debt security that doesn't pay periodic interest but is traded at a deep discount, providing profit at maturity when the bond is redeemed for its full face value.

Current Yield

The annual income (interest or dividends) divided by the current price of the security.

Coupon Bond

A type of bond that pays the holder periodic interest payments at a fixed rate (the coupon rate) before maturing, at which point the principal or face value is repaid.

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, considering all interest payments and the principal repayment.