Which of the Following Statements Regarding Survey Research Is True

question 58

Multiple Choice

Which of the following statements regarding survey research is true?

• A) It is better to have a smaller representative sample than a larger unrepresentative sample.
• B) It is better to have a larger unrepresentative sample than a smaller representative sample.
• C) It is better to have a smaller sample than a larger sample.
• D) It does not matter whether the sample size is small or large.

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Definitions:

Variances of Returns

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify risk.

Mean-Variance Efficient Portfolio

A portfolio constructed to have the highest possible return for a given level of risk, or equivalently, the lowest risk for a given level of expected return, according to Harry Markowitz's theory.

Firm-Specific Variances

Variability in a firm's stock price or returns that is attributable to factors unique to that firm, as opposed to general market factors.

Macroeconomic Factor

A wide-scale economic condition or variable that influences a broad economy and consequently affects individual businesses and financial markets.