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Question 4 (15 Marks) The following table shows the realized annual returns of Stock Jelly Tree from the year of 2011 to 2019: Year End
Question 4 (15 Marks) The following table shows the realized annual returns of Stock Jelly Tree from the year of 2011 to 2019: Year End 2011 2012 2013 2014 2015 2016 2017 2018 2019 Stock Jelly Tree Realized Annual Return 16% 45% 14% 4.5% -5% -20% 18% - 6% -10.5% a. Find the average annual return of Stock Jelly Tree from 2011 to 2019. 3 marks b. Calculate the variance and standard deviation of Stock Jelly Tree's return from 2011 to 2019. 7 marks C. Suppose that you want to use the 9-years historical average return on Stock Jelly Tree to forecast the expected future return of Stock Jelly Tree. i. What is the standard error of your estimate of the expected return? ii. Calculate the 95% confidence interval for your estimate of the expect return. 5 marks Show all your calculations
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