Answer:
A.
Explanation:
This phenomenon best illustrates why intelligence tests need to be revised for predictive validity. The tests are taken initially and show high scores, then they are taken again and show even higher scores. This shows that the individuals are getting smarter. If the test continues to be taken without revision then the same results will continue since the individuals will continue to become smarter but the test will continue being the same. Therefore, becoming much easier for the participants every time. This ultimately leads to better and better scores.
Answer: Risk free rate = 1.9%
Explanation:
The Capital Asset Pricing Model allows for the calculation of the required return using the market return, beta and risk free rate.
Required return = Risk free rate + Beta * ( Market return - Risk free rate)
First find the market rate. Stock Y is uniquely positioned to help with that:
12.4% = Risk free rate + 1.0 * (Market return - Risk free rate)
12.4% = rf + Market return - rf
Market return = 12.4%
Apply this to the formula using Stock Z:
8.2% = rf + 0.6 * (12.4% - rf)
8.2% = rf + 7.44% - 0.6rf
rf - 0.6rf = 8.2% - 7.44%
0.4rf = 0.76%
rf = 0.76% / 0.4
Risk free rate = 1.9%
A high-altitude cloud made up of smaller clouds is a cirrocumulus cloud
