CobWeb Inc

question 36

Multiple Choice

CobWeb Inc.,a software firm,assesses managers based on how well they understand their subordinates,as well as the factors involved in their poor performance.Which of the following examples is the most appropriate evaluation of the input factors involved in analyzing poor performance?

• A)Lin considers if her subordinate has the technical skills required for the task.
• B)Rocio checks if his subordinate is emotionally able to perform at the expected level.
• C)Aliya looks into whether her subordinate has been given information about his performance.
• D)Will analyzes if performance consequences are given in a timely manner.
• E)DeShaun checks if the job flow and procedures are logical.

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Definitions:

Security Market Line

A line that represents the relationship between the risk of an investment and its expected return, used in the capital asset pricing model.

Market Risk Premium

The additional return expected by investors for taking on the higher risk of investing in the stock market over a risk-free rate.

Beta

A measure of a stock's volatility in comparison to the overall market; a beta above 1 indicates greater volatility than the market.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, serving as a benchmark for measuring risk.