Which of the Following Is True About the Sampling Distribution

question 162

Multiple Choice

Which of the following is true about the sampling distribution of the sample mean?

• A) The mean of the sampling distribution is always μ.
• B) The standard deviation of the sampling distribution is always σ.
• C) The shape of the sampling distribution is always approximately normal.
• D) All of the above are true.

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Definitions:

Expected Return

This refers to the average amount of profit or loss one can expect from an investment based on its historical performance and probabilities of outcomes.

Beta

A measure of a stock's volatility in relation to the overall market; used in the capital asset pricing model (CAPM) to estimate the return of an asset based on its risk.

Market Risk

The risk of losses in investments caused by factors affecting the overall performance of financial markets.

Number of Assets

The total quantity of different types of financial assets, such as stocks, bonds, and real estate, owned by an individual or entity.