What is meant by the "noise" in the Signal-To-Noise ratio?

Question

Quizplus · Accepted Answer

The "noise" in the Signal-To-Noise ratio refers to the day-to-day price volatility of a security, which can create fluctuations in the signal (the expected return) and make it difficult to accurately measure the signal-to-noise ratio. Thus, Choice C is the best option. The other choices (A,B,D) do not accurately describe the concept of "noise" in this context. The "noise" in the signal-to-noise ratio refers to the day-to-day price volatility of a security, which can make it more difficult to discern the underlying trend or signal. Options A, B, and D are not related to the concept of noise in the signal-to-noise ratio.

What Is Meant by the "Noise" in the Signal-To-Noise Ratio