Some of the Reasons for Sampling Rather Than Doing a Full

question 51

Multiple Choice

Some of the reasons for sampling rather than doing a full census (100% inspection) of an entire population include:

• A)lowering costs
• B)the opportunity to look more carefully at fewer items
• C)saving time
• D)reducing the consequences of destructive testing
• E)all of the above

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Definitions:

Jensen Alpha

A performance metric that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM), based on the market risk.

Performance

The evaluation of the returns provided by an investment over a certain period in relation to its risk.

Portfolio Manager's Ranking

A rating or ranking system used to evaluate the performance of a portfolio manager, often based on factors such as return on investment, risk management, and adherence to investment strategy.

Comparison Universe

A benchmark or set of comparable entities or investments used to evaluate the performance of a particular asset or portfolio.