Use the Table for the Question(s)below

question 82

Multiple Choice

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

• A)19.4%.
• B)3.8%.
• C)6.2%.
• D)1.95%.

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Definitions:

Comparative Advantage

An economic theory that describes how a country or entity can produce goods and services at a lower opportunity cost than others.

International Trade

Trading goods, services, and capital across borders or territories between countries.

World Price

The international market price of a good or service, determined by global supply and demand.