Suppose that you want to use the 10 year historical average return on the Market to forecast
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Question:
Suppose that you want to use the 10 year historical average return on the Market to forecast the expected future return on the Market.
| Year End | Market Realized Return |
| 2000 | 25.2% |
| 2001 | 30.3% |
| 2002 | 22.3% |
| 2003 | 25.3% |
| 2004 | -11.0% |
| 2005 | -11.3% |
| 2006 | -20.8% |
| 2007 | 33.1% |
| 2008 | 13.0% |
| 2009 | 7.3% |
Calculate the 95% confidence interval for your estimate of the expect return. (Round your answers to two decimals. Express your answers as percentages)
What is the lower bound in %
What is the upper bound in %
Expert Answer:
To calculate the 95 confidence interval for the expected return based on the 10year historical avera... View the full answer
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