Question: The average annual return for the S&P 5 0 0 from 1 8 8 6 to 2 0 2 0 is 1 0 % ,

The average annual return for the S&P 500 from 1886 to 2020 is 10%, with a standard deviation of 20%. Based on these numbers, what is a 95% confidence interval for 2021's returns?
A.-20%,40%
B.-15%,25%
C.-30%,50%
D.-15%,35%
The average annual return for the S&P 500 from 1886 to

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

The table below shows the annual change in the average U.S. home price from 2005 to 2014 according to the S&P/Case-Shiller Index. Calculate the average annual return and its standard deviation....

Q:

Fina3770 (2) Homework: week 9 6 of 16 (14 complete pore: 0 of 1 pt 11-9 (book/static) The last four years of returns for a stock are as shown here: B What is the average annual return? What is the...

Q:

i am taking Cooperate finance which is FIN222 can help me to answer.. ? Tutorial 1 Topic 1 Chapter 1 4. What are the main advantages and disadvantages of organising a firm as a corporation? 6. You...

Q:

Please help me with the following questions. Urgent! Thank you 1. If we are making a go or no go decision on a project the NPV rule and the IRR rule will agree on the acceptance or rejection of the...

Q:

a. Given the following holding-period returns, E, compute the average returns and the standard deviations for the Sugita Corporation and for the market. b. If Sugita's beta is 1.68 and the risk-free...

Q:

1.A 30-year bond pays interest semiannually, has a par value of $1,000, a coupon rate of 3.2%, and has 29 years until maturity. Bonds of competitors with similar risk are discounted at a market rate...

Q:

Task 2 : Return, Risk, and the Security Market Line Suppose you have just begun working for an investment firm called Covili and Wyatt. Paul Covili, one of the firm's founders, has been talking to...

Q:

7 part a Year 1 2 3 4 5 Free Cash Flow $22 million $26 million $29 million $30 million $32 million General Industries is expected to generate the above free cash flows over the next five years, after...

Q:

For Questions 4-14, use Monthly Sales Data screenshot (won't let me upload the excel file) QUESTION 4 Given their performance record, what is the probability of having a month which will have monthly...

Q:

(Related to Checkpoint 8.3) (CAPM and expected returns) a. Given the following holding-period returns, compute the average returns and the standard deviations for the Sugita Corporation and for the...

Q:

A production manager must determine the processing sequence for seven jobs through the grinding and de-burring departments. The same sequence will be followed in each department. The managers goal is...

Q:

Table 3 shows the project costs (in thousand dollars) and other details for the project. Table 3: Project costs (in thousand dollars) and other details for the project Duration (in months) % Activity...

Q:

an index consists of the following. securties what is the value weighted index return

Q:

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Q:

4. What are the principal technologies and standards for wireless networking, communication, and Internet access?

Q:

1. Should managers monitor employee e-mail and Internet usage? Why or why not? The Internet has become an extremely valuable business tool, but its also a huge distraction for workers on the job....

Q:

1. What is net neutrality? Why has the Internet operated under net neutrality up to this point in time? What kind of Internet user are you? Do you primarily use the Net to do a little e-mail and...