How Do We Establish Content and Construct Validity

question 23

Essay

How do we establish content and construct validity?

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Definitions:

Elasticity

A measure of how much the demand or supply of a product changes in relation to a change in one of its determinants like price.

Hedge Ratio

A ratio used to reduce financial risk, representing the proportion of a position hedged to the total position size.

Hedge Ratio

The ratio used to manage risk in financial portfolios, determining the size of a position required to offset potential losses.

Dollar Exposure

The extent to which a company or investment is affected by changes in the US dollar value, particularly in foreign exchange risk.