Q695
Difference between actual return on stock and predicted return is considered as
A.
probability error
B.
actual error
C.
prediction error
D.
random error
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Difference between actual return on stock and predicted return is considered as random error. Random error causes one measurement to differ slightly from the next. It comes from unpredictable changes during an experiment.