Peter, an analyst at Grotesque Tech (GT), models the stock of the company. Suppose that the risk-free rate rRF = 5%, the required market return rtvl = 10%, the risk premium for small stocks rsMB = 3.2%, and the risl premium for value stocks rHML = 4.8%. Suppose also that Peter ran the regression for Grotesque Tech's stock and estimated the following regression coefficients: aGT = 0.00, bGT = 1.2, CGT -20.4, and dGT = -1.3. If Peter uses a Fama-French three-factor model, then which of the following values correctly reflects the stock's required return? a. 72.52%
b. 60.52%
c. 50.48%
d. 65.52%

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.