A standard error measures
A)nominal annual rate of return on a portfolio.
B)risk of a portfolio.
C)reliability of an estimate.
D)real annual rate of return on a portfolio.

Question

Quizplus · Accepted Answer

A standard error measures the reliability of an estimate. It is a statistical term that quantifies the amount of variation or dispersion that exists in a sample dataset. It gives an idea of how much the estimate of a population parameter (such as mean or standard deviation) is likely to differ from the true population parameter. It is commonly used in hypothesis testing and confidence interval estimation. It is not related to the nominal or real annual rate of return on a portfolio or to the risk of a portfolio.

A Standard Error Measures