Question
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 18.12%
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 | 18.12% | 11.39% | 6.28% | 4.85% |
Standard Deviation of returns | 39.31% | 20.96% | 7.02% | 3.75% |
The 95% prediction interval of small stocks is between % and %. (Round to two decimal places and put the lower number first.)
The 95% prediction interval of the S&P500 is between % and %. (Round to two decimal places and put the lower number first.)
The 95% prediction interval of corporate bonds is between % and %. (Round to two decimal places and put the lower number first.)
The 95% prediction interval of T-bills is between % and %. (Round to two decimal places and put the lower number first.)
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