In the Forced Distribution Method, Raters

question 9

Multiple Choice

In the forced distribution method, raters

• A) assign workers to different classes based on work difficulty.
• B) compare workers with previous employees.
• C) assign workers to established categories ranging from poor to outstanding.
• D) observe all workers and rank them from best to worst.

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Definitions:

Market Risk

The risk of losses in financial markets due to factors such as market volatility, interest rate changes, and economic downturns that affect the entire market.

Required Return

The minimum return that investors expect or demand for an investment to be worth it, considering its risk level.

Portfolio

An assortment of investments including stocks, bonds, commodities, cash and equivalents, along with closed-end funds and ETFs (exchange traded funds).

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets.