Calculate the 95% prediction intervals for the four different investments included in the following table. Small Stocks
Question:
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% |
Standard Deviation of returns | 39.05% | 20.63% | 7.36% | 4.82% |
Question content area bottom
Part 1
The 95% prediction interval of small stocks is between ___% and __%
(Round to two decimal places and put the lower number first.)
Part 2
The 95% prediction interval of the S&P500 is between __% and __%
(Round to two decimal places and put the lower number first.)
Part 3
The 95% prediction interval of corporate bonds is between __% and __%
(Round to two decimal places and put the lower number first.)
Part 4
The 95% prediction interval of T-bills is between ___% and ___%
(Round to two decimal places and put the lower number first.)
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling