Use the Table for the Question(s)below

question 72

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-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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