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

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

19.92%

11.57%

6.76%

4.96%

Standard Deviation of returns

39.94%

19.18%

6.64%

3.14%

Question content area bottom

Part 1

The 95% prediction interval of the S&P500 is between _% and _%

enter your response here

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_2

Step: 3

blur-text-image_3

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 In America An Unfinished Story

Authors: Kevin R. Brine, Mary Poovey

1st Edition

022650204X, 978-0226502045

More Books

Students also viewed these Finance questions