Calculate the 95% prediction intervals for the four different investments included in the following table. S&P...
Fantastic news! We've located 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.) TBills 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 TBills 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...

In 2017, Barlow moved from Chicago to Miami to start a new job, incurring costs of $1,200 to move household goods and $2,500 in temporary living expenses. Barlow was not reimbursed for any of these...

Use the statistic of Exercise 13.12 to rework Exercise 13.70, and verify that the square of the value obtained for z equals the value obtained for x2. In exercise In random samples, 46 of 400 tulip...

Consider your school (university or college) as a production system in which the final product is a graduate. For this system: a. Define quality from the producers and customers perspectives. b....

A pipelined datapath is similar to that in Figure 101(b), but with the delays from the top to the bottom replaced by the following values: 0.5 ns, 0.5 ns, 0.1 ns, 0.1 ns, 0.7 ns, 0.1 ns, and 0.1 ns....

Munoz Corporation incurs the following annual fixed costs: Item Cost Depreciation .......... $ 75,000 Officers salaries ........ 160,000 Longterm lease ....... 38,000 Property taxes ......... 12,000...

Suppose that the United States, China, and Mexico are the only three countries in the world. Further suppose that the United States initially has a $6 nondiscriminatory import tariff on shirts, then...

Mr. Agirich of Aggie Farms is considering the purchase of 100 acres of prime ranch land that is adjacent the ranch he now owns. Mr. Agirich can operate the additional 100 acres with present labor,...

Monty Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $598,000 and will take 3 years to...

Gene Autry was a famous cowboy actor and countrywestern singer. In the late 1930's (during the height of the Great Depression) he entered a contract to make several movies for Republic Pictures (a...

Hestia (age 17) is claimed as a dependent by her parents, Rhea and Chronus. In 2023, Hestia received $1,300 of interest income from a corporate bond that she owns. In addition, she has earned income...

Compare the performance of an amplifier with an npn circuit to one with a pnp circuit. The npn has B = 300 and VA = 100V while the pnp has = 200 and VA = 100V. (a) In each circuit, find the required...

Hester (age 17) is claimed as a dependent by his parents, Charlton and Abigail. In 2023, Hester received $10,190 of qualified dividends, and he received $13,190 from a parttime job. What is his...

How could sharing user accounts put an ERP system at risk? A. It can result in federal fines and punishment. B. It can encourage people to send personal communications while at work. C. It can...

Let X be the space of continuous functions : [1, 0) R which have compact support, that is there exists a compact interval I, of [1, 0) such that x(t) = 0 Vt [1, 00) \ Iy. Consider X with the norm...

In July 2013, cnet.com listed the battery life (in hours) and luminous intensity (i. e., screen brightness, in cd/m2) for a sample of tablet computers. We want to know if screen brightness is...

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 oneyear, $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?

1. Explain why both of the situations in Activity 8.1 and Activity 8.2 are observational experiments. What key elements of a designed experiment are missing in each situation? 2. A movie company...

In this activity, you will compare the mean amounts transferred for two different Bank of America customers as well as design some studies that might help the marketing department determine where to...

Identify the rejection region for each of the following cases. Assume 1 = 7 and 2 = 9. a. Ha: 2 1 < 2 2 , = .05 b. Ha: 2 1 > 2 2 , = .01 c. Ha: 2 1 2 2 , = .1 with s 2 1 > s 2 2 d. Ha: 2...
Question Categories