Given that,
Average annual return u = 10%
Standard deviation sd = 25%
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*25)% to (10 + 2*25) or -40% to 60%
So, option A is correct.
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 30%. Based on these numbers what is a 95% confidence interval for 2007 returns?
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 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 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 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%
-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?
Consider the following average annual returns: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.2% 13.5% 7.4% 6.9% 4.1% What is the excess return for the S&P 500? O A. 16.2% OB. 0% OC. 9.4% OD. 11.5%
Asset Average Return Standard Deviation Canadian common stocks 13.20% 16.62% US common stocks 15.59% 16.86% Long bonds 7.64% 10.57% Small-company stocks 14.79% 23.68% Treasury bills 6.04% 4.04% If the returns on small-company stocks are normally distributed, which of the following returns [-30%, -10%, 50%, 70%, 90%] would lie in a 99% confidence interval around the mean, but not in a 95% confidence interval? (70%) Assume the return on T-bills is normally distributed. Assuming a 68% probability, what is the highest...
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.)