The Reason That Cluster Samples Are Subject to Greater Sampling

question 24

Multiple Choice

The reason that cluster samples are subject to greater sampling error than are other probability samples is:

• A)some error is introduced at each stage of the sampling process.
• B)cluster samples have smaller sample sizes.
• C)cluster samples are more expensive.
• D)the sampling fraction of cluster samples tends to be larger than with other samples.

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Definitions:

Risk-Adjusted Return

A measure of the return on an investment relative to the risk taken, often used to compare the performance of investment options.

Sharpe Measure

An alternative term for the Sharpe Ratio, providing an assessment of an investment's risk-adjusted return by calculating the excess return per unit of risk.

Beta

A tool for appraising the degree of volatility or systemic risk involved in a security or portfolio relative to the market at large.

Treynor Measure

A ratio used to evaluate the returns of a portfolio or investment adjusted for risk, taking into account the risk-free rate and market volatility.