You observe a portfolio for five years and determine that its average return is 11.8

11.8% and the standard deviation of its returns in 19.1

19.1%. Would a30% loss next year be outside the95% confidence interval for thisportfolio?

The low end of the95% prediction interval is

nothing

%. (Enter your response as a percent rounded to one decimalplace.)

A.

No, you cannot be confident that the portfolio will not lose more than30% of its value next year. This is because the low end of the prediction interval is greater than minus

30%.

B.

Yes, you can be confident that the portfolio will not lose more than30% of its value next year. This is because the low end of the prediction interval is less than minus

30%.

C.

Yes, you can be confident that the portfolio will not lose more than30% of its value next year. This is because the low end of the prediction interval is greater than minus

30%.

D.

No, you cannot be confident that the portfolio will not lose more than30% of its value next year. This is because the low end of the prediction interval is less than minus

30%.