Refer to the Information Provided in Table 36

question 25

Multiple Choice

Refer to the information provided in Table 36.3 below to answer the question(s) that follow.
Table 36.3
The data in the table was used to estimate the following consumption function: C = 20 + 0.2Y
-Refer to Table 36.3. The error for point F is equal to

• A) -3.
• B) -1.
• C) +1.
• D) +2.

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Definitions:

Expected Return

The anticipated value or profit that an investment is expected to generate, accounting for all known risks and rewards.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability of returns for a given security or market index, indicating the degree of risk involved.

Risky Asset

Any asset that has a significant degree of risk associated with its expected returns, including the possibility of losing some or all of the original investment.

Expected Rate of Return

The average amount of profit or loss one can expect on an investment, based on historical data or estimations of future performance.