Calculate the 95% prediction intervals for the four different investments included in the following table. S&P...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calculate the 95% prediction intervals for the four different investments included in the following table. S&P 500 12.55% 20.83% Average Return Standard Deviation of returns Small Stocks 18.78% 39.05% Corporate Bonds 6.46% 7.83% The 95% prediction interval of small stocks is between -59.32 % and 96.88%. (Round to two decimal places and put the lower number first.) The 95% prediction interval of the S&P500 is between -29.11% and 54.21 %. (Round to two decimal places and put the lower number first.) The 95% prediction interval of corporate bonds is between % and %. (Round to two decimal places and put the lower number first.) T-Bills 4.16% 3.89% Calculate the 95% prediction intervals for the four different investments included in the following table. S&P 500 12.55% 20.83% Average Return Standard Deviation of returns Small Stocks 18.78% 39.05% Corporate Bonds 6.46% 7.83% The 95% prediction interval of small stocks is between -59.32 % and 96.88%. (Round to two decimal places and put the lower number first.) The 95% prediction interval of the S&P500 is between -29.11% and 54.21 %. (Round to two decimal places and put the lower number first.) The 95% prediction interval of corporate bonds is between % and %. (Round to two decimal places and put the lower number first.) T-Bills 4.16% 3.89%
Expert Answer:
Related Book For
Posted Date:
Students also viewed these finance questions
-
Calculate the 95% prediction intervals for the four different investments included in the following table. Small Stocks S&P 500 Corporate Bonds T-Bills Average Return 19.96% 11.45% 5.56% 4.71%...
-
Calculate the 95% prediction intervals for the four different investments included in 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...
-
Standard deviation of returns is often used as a measure of a mutual funds volatility (risk). A larger standard deviation of returns is an indication of higher risk. According to Morningstar.com...
-
Suppose that today, you paid $1,000 for the bond described in Problem 8 of Chapter 8, The net present value functions: NPV and XNPV. What would be the bonds IRR? A bonds IRR is often called the yield...
-
Use the following Chinese (Mainland) balance of payments data from the IMF to answer questions 3.10 through 3.13. 1. Is China experiencing a net capital inflow or outflow? 2. What is China's Total...
-
A company is taking bids on four construction jobs. Three contractors have placed bids on the jobs. Their bids (in thousands of dollars) are given in the file P05_52.xlsx. (A blank indicates that the...
-
(4) What social structures are likely to have an impact, and will they be positive or negative for the change?
-
The adjusted trial balance of Amana Corporation at December 31 shows that sales revenue for the year was $513,000 and other revenue was $37,000. Cost of goods sold for that same period was $256,000,...
-
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you...
-
Mitch Poirier is considering an investment in a multiple-unit, residential building. The building has 30 units, which are all currently rented to tenants. Further details on the apartment building...
-
You are the financial manager of the utility company American Power Inc. and you are considering the construction of a nuclear power plant. The proposed facility costs $ 2 , 4 0 0 million to build,...
-
Jason is a sole trader in the architecture industry. For the year ending 30 June 2019, Jason hired a 3D model designer, Sarah, to help him with the growing business. At the end of the year he has the...
-
Read Case 14-1 Trojan Technologies (15th ed., p. 426 OR 16th ed., p. 431) Guiding Questions and additional information: In preparing your case study, ensure that you answer the following questions:...
-
Jorge Rimert works for Road to Success Collection Agency. He oversees mailing out collection notices to patients. Upon review of the patients who have not paid from Hideaway Hospital, Jorge notices...
-
An epidemiologist plans to conduct a survey to estimate the percentage of women who give birth. How many women must be surveyed in order to be 99% confident that the estimated percentage is in error...
-
A 100 acre plot of land has a concentration time of 80 minutes. The area is residential single family homes with a C-0.40. What is the percent Increase in stormwater runoff from a 50 year recurrence...
-
Problem 2. The Cox Ross and Rubinstein Tree Model (10 points) An Exchange rate has a volatility of 12%. The domestic and foreign risk-free interest rates are 6% and 4%, respectively. The time step on...
-
What can you do to reduce hunger where you live? To reduce hunger globally?
-
You are planning to invest $5000 in an account earning 9% per year for retirement. a. If you put the $5000 in an account at age 23, and withdraw it 42 years later, how much will you have? b. If you...
-
Which of the following one-year, $1000 bank loans offers the lowest effective annual rate? a. A loan with an APR of 6%, compounded monthly b. A loan with an APR of 6%, compounded annually, with a...
-
Ladders, Inc. has a net profit margin of 5% on sales of $50 million. It has book value of equity of $40 million and total liabilities with a book value of $30 million. What is Ladders ROE? ROA?
-
26. Which of the following is most likely to be true about the financial reporting of a public college or university? a. It resembles the financial reporting of private colleges and universities. b....
-
27. On January 1, 2008, a city government leased the following pieces of equipment. Each lease qual ifies as a capital lease. Initial payments are on December 31, 2008. An interest rate of 10 percent...
-
28.On January 1, 2008, a city government leased the following pieces of equipment. Each lease qual ifies as a capital lease. Initial payments are on December 31, 2008. An interest rate of 12 percent...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App