Financial Analyst Larry Potts Needs a Sample of 100 Securities

question 54

Multiple Choice

Financial analyst Larry Potts needs a sample of 100 securities listed on the New York Stock Exchange. In the current issue of the Wall Street Journal,2,531 securities are listed in the "New York Exchange Composite Transactions," an alphabetical listing of all securities traded on the previous business day. Larry uses a table of random numbers to select 100 numbers between 1 and 2,531. His sample is a ____________.

• A) quota sample
• B) simple random sample
• C) systematic sample
• D) stratified sample
• E) cluster sample

---

Definitions:

One-Time Expense

An uncommon or unique expenditure that is not expected to recur in the foreseeable future, often highlighted separately in financial statements.

Straight-Line Depreciation

A process for dividing the expense of a tangible asset uniformly across its expected lifetime in annual segments.

Net Annual Operating

Typically refers to the net operating income or profit generated by a business over the course of a year, excluding non-operating revenues and expenses.

After-Tax Discount Rate

The rate used to discount future cash flows of an investment after taxes have been accounted for, reflecting the investor's required rate of return net of taxes.