Which of the Following Statements Is False

question 63

Multiple Choice

Which of the following statements is false?

• A) The standard error provides an indication of how far the sample average might deviate from the expected return.
• B) The 95% confidence interval for the expected return is defined as the Historical Average Return plus or minus three standard errors.
• C) We can use a security's historical average return to estimate its actual expected return.
• D) The standard error is the standard deviation of the average return.

---

Definitions:

Specialized Farming

Agricultural practices focusing on the cultivation of specific crops or the raising of certain types of livestock, often to maximize efficiency and output.

Shifting Cultivation

A form of agriculture where an area of ground is cleared, cultivated for a few years, and then abandoned for its fertility to naturally replenish.

Early Hunter-Gatherers

Human societies in the Paleolithic era who subsisted by hunting wild animals and gathering plant foods, without engaging in sustained agriculture.