Question
1) Calculate the 95% prediction intervals for the four different investments included in the following table. Small Stocks S&P 500 Corporate Bonds T-Bills Average Return
1) Calculate the 95% prediction intervals for the four different investments included in the following table.
Small Stocks | S&P 500 | Corporate Bonds | T-Bills | |
Average Return | 18.51% | 12.43% | 5.88% | 4.34% |
Standard Deviation of returns | 38.49% | 20.87% | 7.43% | 4.96% |
A)The 95% prediction interval of small stocks is between
and %.
(Round to two decimal places and put the lower number first.)
B) The 95% prediction interval of the S&P500 is between % and %. (Round to two decimal places and put the lower number first.)
C)The 95% prediction interval of corporate bonds is between % and %. (Round to two decimal places and put the lower number first.)
D)The 95% prediction interval of T-bills is between % and %. (Round to two decimal places and put the lower number first.)
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