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# Question of the Week - Quantitative Methods

Des Moines, IA, USAPosts: 211 Sr Associate
edited May 2015
An analyst samples random stocks from the market using the simple random sampling method. The first stock sampled returned 10% in 2012, and the mean 2012 return of the analyst's entire sampled portfolio is 14%. If the market return in 2012 was 16%, the absolute value of the analyst's sampling error is closest to:

## Question of the Week - Quantitative Methods 36 votes

2%
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19%

• MelbournePosts: 80 Sr Associate
6%
It's the difference between the same and the population right? I am assuming the market return would be the population
• 2%
*fist pump*
• Des Moines, IA, USAPosts: 211 Sr Associate
2%

The sampling error is the difference between the observed value and the value it was intended to represent. In this case, the observed value was the mean return, or 14%. The actual mean return was 16%, so the sampling error was 2%.

• Des Moines, IA, USAPosts: 211 Sr Associate
edited June 2015
2%

Ignore comment.