Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A market index has an annual return of 10% over several centuries and a standard deviation of 15%. If you want to be 95% confident
A market index has an annual return of 10% over several centuries and a standard deviation of 15%. If you want to be 95% confident that the average annual return falls within a symmetrical range of 6.08% to 13.92%, assuming a large sample, how many years at a minimum would you need to hold this investment to feel that confident? Show your answer to 2 decimal places
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started