Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions