Consider the following realized annual returns:

The variance of the returns on IBM from 1996 to 2005 is closest to:

A) .3145

B) .0990

C) .1100

D) .9890

The standard deviation of the returns on IBM from 1996 to 2005 is closest to:

A) 33.2%

B) 16.4%

C) 31.5%

D) 11.0%

Suppose that you want to use the 10 year historical average return on IBM to forecast the expected future return on IBM. The standard error of your estimate of the expect return is closest to:

A) 16.4%

B) 10.50%

C) 3.15%

D) 33.20%

Suppose that you want to use the 10 year historical average return on IBM to forecast the expected future return on IBM. The 95% confidence interval for your estimate of the expect return is closest to:

A) 13.2% to 19.5%

B) -4.5% to 37.4%

C) 6.5% to 26.3%

D) -15.1% to 47.8%

\begin{tabular}{|l|r|r|r|r|r|r|r|r|r|r|} \hline Year End & 1996 & 1997 & 1998 & 1999 & 2000 & 2001 & 2002 & 2003 & 2004 & 2005 \\ \hline IBM Realized & & & & & & & & & \\ Return & 46.30% & 26.70% & 86.90% & 23.10% & 0.20% & 3.20% & 27.00% & 27.90% & 5.10% & 11.30% \end{tabular}