Which of the following statements is FALSE?
A)The standard error provides an indication of how far the sample average might deviate from the expected return.
B)The 95% confidence interval for the expected return is defined as the historical average return plus or minus three standard errors.
C)We can use a security's historical average return to estimate its actual expected return.
D)The standard error is the standard deviation of the average return.

Question

Quizplus · Accepted Answer

The 95% confidence interval for the expected return is typically defined as the historical average return plus or minus two standard errors, not three.

Which of the Following Statements Is FALSE