The Following Is Not a Threat to External Validity

question 2

Multiple Choice

The following is not a threat to external validity:

• A)the experimental sample is not representative of the population of interest.
• B)the treatment being studied is not representative of the treatment that would be implemented more broadly.
• C)experimental participants are volunteers.
• D)partial compliance with the treatment protocol.

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Definitions:

Expected Rate of Return

The anticipated return on an investment, comprising both the risk-free rate of return and additional returns expected for taking on extra risk.

Beta

A measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to the market average.

Risk-Free Rate

Refers to the return on investment with no risk of financial loss, often estimated by the yield of government bonds.

Market Portfolio

A theoretical bundle of all available assets in the market, representing the entire stock market and used as a benchmark to assess investment performance.