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You observe a portfolio for five years and determine that its average return is 12.1% and the standard deviation of its returns in 19.6%. Would
You observe a portfolio for five years and determine that its average return is 12.1% and the standard deviation of its returns in 19.6%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is % Enter your response as a percent rounded to one decimal place. A. 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% 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. C. 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%. 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
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