Assume a stock's monthly returns follow a normal distribution with a mean of 8% and standard...
Assume a stock's monthly returns follow a normal distribution with a mean of 8% and standard deviation of 8%. What is the lower bound of the 68.26% confidence interval on realized monthly returns?
Homework Answers
Average Return = 8.00%
Standard Deviation = 8.00%
Lower Bound of 68.26% Confidence Interval = Average Return - 1 *
Standard Deviation
Lower Bound of 68.26% Confidence Interval = 8.00% - 1 * 8.00%
Lower Bound of 68.26% Confidence Interval = 0.00%
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