You observe a portfolio for five years and determine that its average return is 12.4% and the standard deviation of its returns in 19.7%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio?

The low end of the 95% prediction interval is nothing%. (Enter your response as a percent rounded to one decimal place.)

OPTIONS

A. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than 30%.

B.Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than 30%.

C.No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than 30%.

D.Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than 30%.