A Graphic Rating Scale Used with Unclear Standards May Appear

question 46

Multiple Choice

A graphic rating scale used with unclear standards may appear to be objective, however, it will probably result in unfair appraisals because the traits and degrees of merit are

• A)open to interpretation.
• B)tightly structured.
• C)well defined.
• D)specific in nature.
• E)too strict/lenient.

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Definitions:

Effective Annual Rate

The interest rate on a loan or investment, adjusted for the effect of compounding over a one-year period.

Par

The face value of a bond or other financial instrument, which is the amount to be paid to the holder at maturity.

HPR

Holding Period Return, a measure of the total return received from holding an asset or portfolio of assets over a specified period of time.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.