Below you will find excerpts from an empirical article by Ca…
Questions
Belоw yоu will find excerpts frоm аn empiricаl аrticle by Campbell et al. (2010). Please respond to the 6 fill-in-the blank questions. In 1988, Raskin and Terry developed the Narcissistic Personality Inventory (NPI), a self-report measure of narcissism. These researchers defined narcissism as including 7 distinct components: authority, entitlement, exhibitionism, explotativeness, self-sufficiency, superiority, and vanity. In order to provide evidence of [answer1] validity, Raskin and Terry (1988) included items that assessed each of the seven components of narcissism. In a 2010 paper, Campbell et al. agreed that entitlement is clearly a component of narcissism. However, these researchers noted that there are a few problems with using the NPI Entitlement subscale as a stand-alone measure of psychological entitlement. First, they argue, the NPI entitlement subscale lacks [answer2] validity: some items (e.g., “I will never be satisfied until I get all that I deserve”) sound/look like they are measuring entitlement; but other items (e.g., “I have a strong will to power; If I ruled the world it would be a better place”) sound/look more like power seeking or dominance. In addition, Campbell et al. (2010) argued that the NPI entitlement subscale lacks the degree of [answer3] reliability desired for self-report measures, with Cronbach alpha values often far below the .70 rule of thumb. Campbell et al. (2010) note: “Our goal in this article was to develop and validate a measure of psychological entitlement as well as look at some potential interpersonal consequences of entitlement. In the process, we gain a better theoretical understanding of the construct.” Later, Campbell et al. (2010) note: “It is important to state explicitly our approach to psychological entitlement. We conceptualize psychological entitlement as a stable and pervasive sense that one deserves more and is entitled to more than others. This sense of entitlement will also be reflected in desired or actual behaviors.” What is the name of the conceptual variable that Campbell et al. (2010) investigated? [answer4] Campbell et al. (2010) correlated scores on their Psychological Entitlement Scale (PES) with other measures as a test of the scale’s validity. As expected, there was a positive correlation between scores on the PES and scores on Raskin and Terry’s (1988) Entitlement subscale of the NPI (r = .54). This finding provides evidence of [answer5] validity for the PES. In addition, as expected, scores on the PES were not significantly correlated with social desirability (a measure of overall level of socially desirable responding), (r = -.06). This finding provides evidence of [answer6] validity for the PES.
Drоugаs Fооds is considering the introduction of а new cаndy bar line. The project would require a $4.0 million after-tax investment outlay today (t = 0). The after-tax cash flows would depend on whether the new candy bar is well received by consumers. There is a 60% chance that demand will be good, in which case the project will produce after-tax cash flows of $2.50 million at the end of each of the next 3 years. There is a 40% chance that demand will be poor, in which case the after-tax cash flows will be $0.05 million for 3 years. The project has a WACC of 12%. The firm will know if the project is successful after receiving the cash flows the first year, and after receiving the first year’s cash flows it will have the option to abandon the project. If the firm decides to abandon the project the company will not receive any operating cash flows after t = 1, but it will be able to sell the assets related to the project for $1.90 million after taxes at t = 1. Assuming the company has an option to abandon the project, what is the expected NPV (in millions of dollars) of the project today?
Stоcks D аnd T eаch hаve an expected return оf 12.5%, a beta оf 1.0, and a standard deviation of 35%. The risk-free rate of return (rRF) is 5.5%. Assume that the market is in equilibrium. The returns on the two stocks have a correlation of 0.75. Portfolio P has 35% in Stock D and 65% in Stock T. Which of the following statements is CORRECT?
Use the fоllоwing tо аnswer the next two questions. Heskel Industries generаted the following income stаtement over the past year: Here is the firm’s balance sheet at the beginning and end of the year: