Sampling a Population Is Often Necessary Because the Cost of Studying

question 14

True/False

Sampling a population is often necessary because the cost of studying all the items in the population is prohibitive.

---

Definitions:

Security's Beta

A measure of a stock's volatility in comparison to the overall market; a beta greater than 1 indicates higher volatility than the market, while a beta less than 1 indicates lower volatility.

Security Market Line

A line that represents the relationship between risk and expected return in capital market theory, often used in the capital asset pricing model.

Beta

Beta is a measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 means it is less volatile.

Regression Line

A straight line that best fits the data points in a scatter plot, used in statistics to model the relationship between two variables.