If a Client Has Constant Risk Tolerance, He or She

question 26

Multiple Choice

If a client has constant risk tolerance, he or she requires ______ expected returns to compensate for additional units of risk.

• A) constant
• B) less
• C) more
• D) more diversified

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Definitions:

Test-Retest

The method of assessing the reliability of a test by administering the same test to the same subjects at two different points in time and comparing the scores.

Internal Consistency

A measure of reliability that assesses how consistently the items of a test measure a single construct or concept.

Coefficient Alpha

A statistical measure used to assess the reliability or internal consistency of a test or scale.

Kuder-Richardson

A set of formulas used to assess the reliability of binary (e.g., true/false, yes/no) scored tests or items within tests.