Dr Leman Is Interested in Using a Survey to Study

question 19

Essay

Dr. Leman is interested in using a survey to study people's experiences with natural disasters, like Hurricane Sandy and the tornadoes that hit Joplin, Missouri, and Tuscaloosa, Alabama. Provide one reason why a survey is a good method to study this topic and one reason that a survey may not be a good method.

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Definitions:

Market Returns

The total return, including capital gains and dividends, from investing in financial markets over a specified period.

Historical Performance

Refers to the past financial results and operations of a company or investment, used to predict future performance.

Efficient-Market Hypothesis

The theory that all existing information is already reflected in stock prices, thus making it impossible to consistently achieve higher returns than the overall market through stock selection or market timing.

Stock Prices

The cost or value of a share of a company's stock traded on the stock market.