If returns of S P 500 stocks are normally distributed, what range of returns would you expect to see 95 of the time Base your answer on Figures (1) and(2) Small Stocks 22 05 S P 500 11 74 Corporate Bonds 6 49 Treasury Bills 4 09 10 15 20 25 Average Annual Return ( ) Small Stocks 42 62 S P 500 20 52...

Plan The range would be a 95 prediction interval that runs from two standar ...

If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to

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If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Base your answer on Figures (1) and(2).

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:14 AM

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If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to

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Small Stocks 22.05 S&P 500 11.74 Corporate Bonds 6.49 Treasury Bills 4.09 10 15 20 25 Average Annual Return (%) Small Stocks 42.62 S&P 500 20.52 Corporate Bonds 7.04 Treasury Bills 3.42 0 10 20 30 40 50 Standard Deviation of Returns (%)

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Fundamentals of Corporate Finance

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