Question

Velma Vasquez, fund manager of the Vasquez Value Fund, manages a portfolio of 250 common stocks. Velma relies on various statistics, such as variance, to assess the overall risk of stocks in an economic sector. Her staff reported that for a sample 14 utility stocks the mean annualized return was 14% and that the variance was 3%. Assume that annualized returns are normally distributed. The 95% confidence interval for the population variance of annualized returns is _______.

Answer 1