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 IBM to forecast the expected future return on IBM.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 IBM to forecast the expected future return on IBM.The standard error of your estimate of the expect return is closest to:

Quizplus · Accepted Answer

B) R_annual= 11ea7db1_bcc9_3e95_b9bd_1392810655f8_TB1619_11 = 11ea7db1_bcc9_3e96_b9bd_9f3d9469dcb2_TB1619_11 = 16.45% 11ea7db1_bcc9_3e97_b9bd_8fb62d80faf0_TB1619_00 Variance = SUM of (R - R)²/ T - 1 = 0.9907165 / 9 = 0.1100796 Standard deviation = 11ea7db1_bcc9_65a8_b9bd_43b3f16dbce1_TB1619_11 = 11ea7db1_bcc9_65a9_b9bd_cf3b0572d31d_TB1619_11 = 0.3317825 Standard error = Standard Deviation / T = 0.3317825 / 10 = .03318 or 3.32%

Use the Table for the Question(s) Below