In the Analytical Hierarchy Process, a High Consistency Ratio Is

question 88

Multiple Choice

In the analytical hierarchy process, a high consistency ratio is considered ________ consistent than a low consistency ratio.

• A) less
• B) more
• C) none of the above

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Definitions:

Equity Premium Puzzle

The observed phenomenon where stocks have historically outperformed government bonds by a greater margin than can be explained by traditional financial theories.

Survivorship Bias

A bias that occurs when analyzing performance or characteristics by overlooking failures or non-survivors, leading to overly optimistic or skewed outcomes.

Measurement Error

The difference between a measured variable's observed value and its true value, often due to inaccuracies in data collection or processing.

Multifactor Model

An investment model that seeks to describe the expected returns on a security based on various risk factors, providing a more comprehensive view than models based on a single factor.