Question

The average annual return over the period 1926-2009 for small stocks is 21.1%, and the standard deviation of returns is 21.1%
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Correct answer is option b. -21.10%, 63.3%

Calculation of 95% Confidence Interval for 2010 return

95% Confidence Interval = (Average Return - 2*Standard Deviation, Average Return + 2*Standard Deviation)
= (0.2110 - 2*0.2110, 0.2110 + 2*0.2110)
= (-0.211, 0.633)

= (-21.10%, 63.3%)

Add a comment
Know the answer?
Add Answer to:
The average annual return over the period 1926-2009 for small stocks is 21.1%, and the standard...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT