1 Credit ratings for bond issues. 2 Cash dividends per share. 3 Hedge fund classification types. 4 Bond maturity in years.
Answers: Ordinal Ratio Nominal Ratio
Why credit ratings for bond issues are not Interval?
Cash dividends can be 0 which would be anothing that`s why its ratio, right?
For Hedge Fund classification please I need someone to give me a example, cuz I just didn`t got it.
Bond maturity in years I also need a explanation.
Credit ratings are ordinal because they don’t show you the difference in magnitude of each rating value. Think about it, you have bonds rated AAA, AA, BBB, BB, etc. What’s the difference in magnitude between An AA bond and a BBB bond; you wouldn’t know. The different ratings are in order of best to worst, but you don’t know the difference in how much better, or how much worse.
Ratio just means something divided by something. Another ratio is earnings per share which is earnings/share.
Hedge fund classification types are nominal, meaning its by name only and it doesn’t tell you any type of ranking. For example, hedge fund types are long-short, equity neutral, macro, etc. Those names don’t tell you anything about their order.
Bond maturity in years, not sure why its a ratio.