Vidyalelo
Management · Q695

Financial Management

Graduate and Post Graduate · Management · question 695

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
Answer

Answer: 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.