Question: Question #1 ( Using average and standard deviation of annual returns , 1 5 points ) : F ill in your answers in the blanks

Question #1 (Using average and standard deviation of annual returns, 15 points): Fill in your answers in the blanks for each of the empty yellow highlighted cells in the table below.

Mutual fund in the video and Power Point file

Fidelity 500 Index Fund

Fidelity U.S. Bond Index Fund

a.) Average of the last 10 years of annual returns

13%

13.42%

3.54%

b.) Standard deviation of annual returns

20%

18.45%

3.46%

c.) Our best forecast of next years return

13%

________

________

d.) For 68% of years, we should expect the annual return will not be lower than:

-7%

________

________

e.) For 68% of years, we should expect the annual return will not be higher than:

33%

________

________

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