An analyst decides to select 10 stocks for her portfolio by placing the ticker symbols for all the stocks traded on the New York Stock Exchange in a large bowl. She randomly selects 20 stocks and will put every other one chosen into her 10-stock portfolio. The analyst used:

A simple random sampling.

explanation

In simple random sampling, each item in the population has an equal chance of being selected. The analyst’s method meets this criterion.

Take more free practice tests for other PASSEMALL topics with our cfa exam prep now!

Comments