Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Base your answer

image text in transcribed

If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Base your answer on the information below. Small Stocks S&P 500 Corporate Bonds T-Bills Average Return 19.39% 11.29% 6.92% 3.68% Standard Deviation of returns 39.11% 19.15% 6.91% 3.99% The 95% prediction interval of the S&P500 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 to Expert-Tailored 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

Recommended Textbook for

Finance At 40 Financial Intelligence

Authors: MOIRA O'NEILL Moira O'Neill

1st Edition

1408101114, 978-1408101117

Students also viewed these Finance questions

Question

Write short notes on Interviews.

Answered: 1 week ago