What are the advantages and disadvantages of th random method?
Answer:
the advantage of the random method is that it absolutely does not require analysis, interpretation, or fundamental basis. it is very easy to decide, essentially.
the disadvantage, obviously, is the amount of risk you will be taking. since it is random, then you should expect extreme volatility especially if the external shocks are considerable.
A random method for what? For stock picking.dreadful; for statistical sampling ideal; .get it? If you need something with predictable outcome, then random is not the correct way. However, when you want to estimate mathematically the possibility of something happening, then random selection from a meaningful population is the preferred method. The term in itself is hard to achieve: "randomness" is virtually impossible because it implies free from any variances that may affect it.
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