Which of the Following Statements Is True of the Reliability

question 74

Multiple Choice

Which of the following statements is true of the reliability of a measurement?

• A)A measurement is said to be reliable when only two iterations are involved in measurement.
• B)Reliability refers to the measuring instrument rather than to the characteristic itself.
• C)Reliability is not dependent on the attributes of the measuring instruments used.
• D)Reliability indicates the degree to which two objects are related to each other.
• E)Reliability indicates the extent to which performance on the measure is related to performance on the job.

---

Definitions:

Stock Betas

An index for determining the degree of volatility, or built-in risk, that a security or a portfolio encounters in comparison with the market at large.

Highest Betas

Assets or securities that exhibit the greatest sensitivity to market movements, typically offering higher potential returns, but also higher risk.

Lowest Betas

In finance, refers to the stocks or portfolios with the lowest measures of volatility or market risk in comparison to the market as a whole.

Principle of Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset's volatility.