Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The average annual retum over the period 1886-2006 for stocks that comprise the S&P 500 is 10.5%, and the standard deviation of returns is 19%.

image text in transcribed
The average annual retum over the period 1886-2006 for stocks that comprise the S&P 500 is 10.5%, and the standard deviation of returns is 19%. Based on these numbers what is a 95% confidence interval for 2007 retums? OA -12.5% 33.5% OB.-27.5%, 48.5% O C. - 17.5%, 38.5% OD. - 13.75% 24.25%

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

Personal Financial Literacy

Authors: Joan S. Ryan , Christie Ryan

3rd Edition

1337412686,1305980697

More Books

Students also viewed these Finance questions