Investments in individual stocks and stock portfolios (combination stock) take a
ID: 3132278 • Letter: I
Question
Investments in individual stocks and stock portfolios (combination stock) take a lot of risk and required details studies on the return rate trend. The objective of investor is to gain higher return and less risky.
The lesser the variation in returns, the investor will be more confident in investing in the portfolios. Based on the following table that consist the return rate of 3 investments, A, B and C; answer the following questions.
a) Sampling is done as to avoid time and resource consuming exercise. Based on the given data, suggest the best sampling method to preserve the accuracies of the finding. Justify your choice.
Returns of Investments
Investment A
Investment B
Investment C
30.00
13.09
30.33
-32.17
6.80
-26.90
-2.13
13.77
-30.37
30.31
64.26
35.58
4.30
22.42
-5.61
6.06
-18.74
-27.96
25.00
34.40
29.00
14.73
24.37
12.71
12.89
49.87
-26.01
36.13
-15.46
-1.81
-20.24
22.92
0.46
1.53
-16.25
6.11
1.20
20.95
2.07
17.61
-17.33
6.04
-2.59
43.71
29.44
1.20
7.60
40.45
33.00
-12.83
11.00
9.94
57.41
-30.72
14.26
0.52
-25.93
-33.39
65.97
-36.68
-15.83
61.00
8.29
58.67
-26.24
27.93
0.63
-11.96
61.00
0.25
57.01
-28.17
38.00
1.94
-20.44
5.23
61.24
-34.75
6.93
28.45
-34.75
66.00
58.28
9.66
-13.24
-8.55
54.19
24.30
-28.54
63.37
-18.95
-5.29
44.00
-10.01
19.84
-4.15
9.43
-7.04
-20.23
35.24
13.73
23.46
1.21
-12.11
4.16
40.70
8.80
-11.53
31.76
12.89
10.03
22.18
62.64
3.19
11.07
63.00
10.51
3.24
28.23
24.34
8.47
-19.27
39.04
25.10
7.05
22.87
36.08
-9.22
24.76
-24.24
-28.51
45.21
-21.95
-17.00
15.28
-38.47
64.88
-18.09
10.33
17.30
34.21
13.44
47.27
-9.59
12.68
52.00
52.00
68.00
22.70
-26.10
Returns of Investments
Investment A
Investment B
Investment C
30.00
13.09
30.33
-32.17
6.80
-26.90
-2.13
13.77
-30.37
30.31
64.26
35.58
4.30
22.42
-5.61
6.06
-18.74
-27.96
25.00
34.40
29.00
14.73
24.37
12.71
12.89
49.87
-26.01
36.13
-15.46
-1.81
-20.24
22.92
0.46
1.53
-16.25
6.11
1.20
20.95
2.07
17.61
-17.33
6.04
-2.59
43.71
29.44
1.20
7.60
40.45
33.00
-12.83
11.00
9.94
57.41
-30.72
14.26
0.52
-25.93
-33.39
65.97
-36.68
-15.83
61.00
8.29
58.67
-26.24
27.93
0.63
-11.96
61.00
0.25
57.01
-28.17
38.00
1.94
-20.44
5.23
61.24
-34.75
6.93
28.45
-34.75
66.00
58.28
9.66
-13.24
-8.55
54.19
24.30
-28.54
63.37
-18.95
-5.29
44.00
-10.01
19.84
-4.15
9.43
-7.04
-20.23
35.24
13.73
23.46
1.21
-12.11
4.16
40.70
8.80
-11.53
31.76
12.89
10.03
22.18
62.64
3.19
11.07
63.00
10.51
3.24
28.23
24.34
8.47
-19.27
39.04
25.10
7.05
22.87
36.08
-9.22
24.76
-24.24
-28.51
45.21
-21.95
-17.00
15.28
-38.47
64.88
-18.09
10.33
17.30
34.21
13.44
47.27
-9.59
12.68
52.00
52.00
68.00
22.70
-26.10
Explanation / Answer
For the given information, Systematic sampling method is the best method to get accurate results of the findings
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