The correct answer is C. prediction error.
A prediction error is the difference between the actual value of a variable and the value predicted by a model. In the case of stock returns, the prediction error is the difference between the actual return on a stock and the return predicted by a model.
Probability error is a measure of the uncertainty in a prediction. It is calculated as the square root of the variance of the prediction errors.
Actual error is the difference between the actual value of a variable and the value that is expected to occur. In the case of stock returns, the actual error is the difference between the actual return on a stock and the expected return.
Random error is a type of error that is caused by factors that are not predictable. In the case of stock returns, random error can be caused by factors such as changes in the overall market, changes in the company’s business, or changes in the economy.