Imagine We Conducted a Mediation Analysis and Obtained a Kappa-Squared

question 3

Multiple Choice

Imagine we conducted a mediation analysis and obtained a kappa-squared value of .8 for the indirect effect. What does this tell us?

• A)That the indirect effect is medium relative to the maximum possible value.
• B)None of these
• C)That the indirect effect is close to being as large as it could possibly be given the research design.
• D)That the indirect effect is small relative to the maximum possible value.

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Definitions:

Variability of Returns

The extent of fluctuation in the returns on an investment over a certain period of time, often used as a measure of investment risk.

Business-specific Risk

This is the risk associated with the unique factors impacting a specific company or industry, excluding broader market or economic risks.

Unsystematic Risk

The risk associated with a particular company or industry, which can be mitigated through diversification.

Diversification

The strategy of spreading investments among various financial assets to reduce risk.