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(12) Consider the following realized annual returns for an Index: Year End 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Index Realized Return

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(12) Consider the following realized annual returns for an Index: Year End 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Index Realized Return 23.60% 24.70% 30.50% 9.00% -2.00% -17.30% -24.30% 32.20% 4.40% 7.40% Suppose that you want to use the 10 year historical average return on the Index to forecast the expected future return on the Index. The standard error of your estimate of the expect return is closest to: SD A) B) C) D) 19.4% 3.8% 6.15% 8.8%

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