Suppose a Professor Collects Survey Data by Passing Out Surveys

question 107

True/False

Suppose a professor collects survey data by passing out surveys in his/her classes, where the population of interest is defined as all students enrolled at that university. This is an example of nonstatistical sampling technique.

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Definitions:

Passive Investment

An investment strategy involving minimal buying and selling, aiming to benefit from long-term market returns with low fees.

Four-factor Model

A financial model that expands the three-factor model (market risk, size risk, and value risk) by adding a momentum factor to explain stock returns.

Fama and French Factors

Fama and French factors are three factors—market risk, size risk, and value risk—used in explaining portfolio returns beyond the market risk measured by beta.

Semistrong-form

A theory suggesting that stock prices incorporate all publicly available information, including historical data and public news.