Given that,
Average annual return u = 10%
Standard deviation sd = 30%
For a confidence interval of 95%, Z value from the Z-table is 2
So, range is (u-Z*sd) to (u+Z*sd)
So range = (10 - 2*30)% to (10 + 2*30) or -50% to 70%
The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is...
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%
11.2-33 Question Help The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 5%, and the standard deviation of returns is 15%. Based on these numbers, what is a 95% confidence interval for 2007 returns? A. -25%, 25% В. — 15%, 25% С. - 12.5%, 17.5% D. -25%, 35%
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 11.511.5%, 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%
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 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
-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?
If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Base your answer on the information below. Average Return Standard Deviation of returns Small Stocks 18.37% 38.79% S&P 500 11.84% 20.01% Corporate Bonds 6.47% 6.98% T-Bills 3.46% 3.14% The 95% prediction interval of the S&P500 is between % and %. (Round to two decimal places and put the lower number first.)
Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2002-2014 S&P 500 Index Dividends Paid S&P 500 Realized Return Microsoft Realized Return 1-Month T-Bill Return Year End 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1148.08 879.82 1111.92 1211.92 1248.29 418.30 1468.36 903.25 1115.10 1257.64 1257.60 1426.19 1848.36 2058.90 20.80 20.98 23.15 -22.1% 28.7% 109% -22 0% 6.8% 89% 15.8% 5.5% -37.0% 26 5% 158% 20.8% -44.4% 60 5% -65% -4.5% 4.8% 47%...
4. Suppose that a stock gave a realized return of 20% over a two-year time period and a 10% return over the third year. The geometric average annual return is ________. (2 points) A) 8.28% B) 12.43% C) 14.08% D) 16.57% 5. Bear Stearns' stock price closed at $98, $103, $58, $29, $4 over five successive weeks. The weekly standard deviation of the stock price calculated from this sample is ________. (2 points) A) $30.07 B) $49.40 C) $42.96 D)...