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.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest.

Cost of Goods Sold

Cost of goods sold is the direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Gross Profit Rate

The ratio of gross profit to net sales, expressed as a percentage, indicating the efficiency of a company in managing its direct costs.

Inventory

The total amount of goods and materials held by a business for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.