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Which of the Following Situations, If Either, Illustrate(s) a Proper

question 5

Multiple Choice

Which of the following situations, if either, illustrate(s) a proper simple random selection process?
(1) A sample is obtained by selecting 10 male and 10 female students from a student organization to represent the student population.
(2) A sample is obtained by assigning every athlete on campus a unique number and using a lottery to select 20 athletes to represent the student population.


Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification.

Beta

Beta is a measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole, indicating its sensitivity to market movements.

Market Index

A hypothetical portfolio of investment holdings that represents a segment of the financial market, used as a benchmark to measure an investment's performance.

Standard Deviation

A statistical measurement of variation or dispersion around an average, indicating how much a set of numbers is spread out.

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