Use the table for the question(s) below.
Consider the following realized annual returns:
-Suppose that you want to use the 10 year historical average return on the S&P 500 to forecast the expected future return on the S&P 500.The standard error of your estimate of the expect return is closest to:

Question

Use the table for the question(s) below.
Consider the following realized annual returns: 
-Suppose that you want to use the 10 year historical average return on the S&P 500 to forecast the expected future return on the S&P 500.The standard error of your estimate of the expect return is closest to:

Quizplus · Accepted Answer

D) R_annual= 11ea7db1_bcc8_f06f_b9bd_5b95080f5b24_TB1619_11 = 11ea7db1_bcc8_f070_b9bd_0d5510095b41_TB1619_11 = 11ea7db1_bcc8_f071_b9bd_83af3b3aa16c_TB1619_11 = 8.8% 11ea7db1_bcc9_1782_b9bd_430dfd6af854_TB1619_00 Variance = SUM of (R - R)²/ T - 1 = 0.3405116 / 9 = 0.0378346 Standard deviation = 11ea7db1_bcc9_1783_b9bd_8b8b200c1154_TB1619_11 = 11ea7db1_bcc9_1784_b9bd_ebbcc216dcdc_TB1619_11 = 0.1945112 Standard error = Standard Deviation / T = 0.1945112 / 10 = .01945 or 1.95%

Use the Table for the Question(s) Below