Answer is Option D
Based on the 68-95-99 rule,
Based on this,
Return interval = Return% +/- 2 * Standard deviation
Return interval = 5% +/- 2 * 15%
Lower interval = 5% - 30% = -25%
Higher interval = 5% + 30% = 35%
11.2-33 Question Help The average annual return over the period 1886-2006 for stocks that comprise the...
The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 10%, and the standard deviation of returns is 30%. Based on these numbers what is a 95% confidence interval for 2007 returns?
The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 10%, and the standard deviation of returns is 25%. Based on these numbers what is a 95% confidence interval for 2007 returns? OA. -40%, 60% OB. -20%, 30% O c. - 30%, 50% OD. -25%, 45%
The average annual return over the period 1926-2009 for small stocks is 21.1%, and the standard deviation of returns is 21.1%. Based on these numbers, what is a 95% confidence interval for 2010 returns? OA. 0%, 42.2% OB. - 21.1%, 63.3% OC. – 10.6%, 31.7% OD.-21.1%, 42.2% Click to select your answer
The average annual return over the period 1926-2009 for the S&P 500 is 12.0%, and the standard deviation of returns is 21.3%. Based on these numbers, what is a 95% confidence interval for 2010 returns? 56) A) -30.6%, 54.6% B) -1.5%, 21.8% C) -10.7%, 32.8% D) -30.6%, 76.4%
The average annual return over the period 1926-2009 for the S&P 500 is 11%, and the standard deviation of returns is 20.6%. Based on these numbers, what is a 95% confidence interval for 2010 returns? O A. - 1.5%, 20.9% OB. - 10.6%, 31.3% O c. 30.2%, 73.1% OD. – 30.2%, 52.2%
The average annual return over the period 1926-2009 for the S&P 500 is 11.511.5%, and the standard deviation of returns is 20.1 %20.1%. Based on these numbers, what is a 95% confidence interval for 2010 returns? A. negative 1.4−1.4%, 20.720.7% B. negative 28.7−28.7%, 72.472.4% C. negative 28.7−28.7%, 51.751.7% D. negative 10−10%, 3131%
-30.9%, 53.5% A -1.5%, 21.4% B -10.8%, 32.1% C 30.9%, 74.9% D The average annual return over the period 1926-2009 for the S&P 500 is 11.3%, and the standard deviation of returns is 21.1%. Based on these numbers, what is a 95% confidence interval for 2010 returns?
The following table, contains annual returns for the stocks of ABC Corp. (ABC) and Company B (B). The returns are calculated using end-of-year prices (adjusted for dividends and stock splits) retrieved from http://www.finance.yahoo.com/. Use the information to create an Excel spreadsheet that calculates the standard deviation of annual returns over the 10-year period for ABC, B, and of the equally-weighted portfolio of ABC and B over the 10-year period. (Hint: Review the Excel screenshot on page 173.) The average annual...
Consider the following table for the total annual returns for a given period of time. Series Average return Standard Deviation Large-company stocks 11.7 % 20.6 % Small-company stocks 16.4 33.0 Long-term corporate bonds 5.7 8.6 Long-term government bonds 6.1 9.4 Intermediate-term government bonds 5.6 5.7 U.S. Treasury bills 3.8 3.1 Inflation 3.1 4.2 Requirement 1: What range of returns would you expect to see 95 percent of the time for long-term corporate bonds? What about 99 percent of the time?
6) Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 percent. Using Blume's formula, what is your best estimate of the future annual returns over the next 10 years? A) 11.84 percent B) 13.04 percent C) 12.46 percent D) 11.18 percent E) 12.91 percent 6 7) Which one of the following statements is correct based on the period 1926-2016? A) The standard deviation of the annual rate of inflation was...