Question
The Ishares Bond Index fund (TLT) has a mean (average) and annual standard deviation of realized returns of 9% and 10%, respectively. If these are
The Ishares Bond Index fund (TLT) has a mean (average) and annual standard deviation of realized returns of 9% and 10%, respectively. If these are unbiased estimators of expected returns and future volatility, answer the following. (Round your answers to the nearest integer.)
(a)
What is the 68% confidence interval for the returns on TLT next year (as a percent)?
% to %
(b)
What is the 95% confidence interval for the returns on TLT next year (as a percent)?
% to %
(c)
What is the 99.7% confidence interval for the returns on TLT next year (as a percent)?
% to %
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