Survey Results Are Most Likely to Be Accurate When

question 72

Multiple Choice

Survey results are most likely to be accurate when:

• A) the survey is completed through a face-to-face interview.
• B) the survey oversamples highly educated respondents.
• C) the questions are based on a topic familiar to most Americans.
• D) the questions are complex and convoluted.
• E) the survey asks a hypothetical question that the respondent finds thought-provoking.

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Definitions:

Market Risk Premium

The extra return expected by investors from holding a risky market portfolio instead of risk-free assets.

Security Market Line

A graphical representation used in financial markets to illustrate the relationship between risk and return for individual securities.

Reward-To-Risk Ratio

A measure used in finance to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield of government bonds from stable governments.