Question: The average return for the SThe average return for the S The average return for the S&P 5 0 0 from 1 8 8 6

The average return for the SThe average return for the S
The average return for the S&P 500 from 1886 to 2006 is 5%, with a standard deviation of 15%. Based on these numbers, what is a 95% confidence interval for 2007 returns?
a.-25%,35%
b.-12.5%,17.5%
c.-25%,25%
d.-15,25%
The average return for the SThe average return

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:

Portfolio Theory/CAPM: For the following questions, consider XYZ Company that has recently launched a new fund called ABC Company. Although the fund has been quite volatility (with a monthly return...

Q:

Consider the following average annual retums: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.8% 13.9% 7.9% 6.8% 4.2% What is the excess return for the...

Q:

Consider the following average annual returns: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.2% 13.5% 7.4% 6.9% 4.1% What is the excess return for...

Q:

Consider the following average annual returns: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23% 13.9% 7.5% 6.1% 4.7% What is the excess return for the...

Q:

Consider the following average annual returns: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.2% 13.9% 7.6% 6.4% 4.9% What is the excess return for...

Q:

Find the R 2 , alpha, and beta of the portfolios. Compute the average return differential with and without sign. Please show excel formulas. Month Portfolio Return S&P 5 0 0 Return January 5 . 0 0 5...

Q:

If an FI could hedge all its risks, the FI's shareholders could expect to earn Select one: a. the industry average return b. the T-Bill rate c. the same rate of return as the S&P 500 d. the...

Q:

please i need help in excel by writing the formula to understand thank you e Search AutoSave ODE 8 File Home Insert 8 Draw Nasser_Berk DeMarzo_Harford Problem.11-11.Start Formulas Data Review View...

Q:

Complete the steps below wing call references to given data or previous calculations. In some cases, a simple call reference is all you need. To copy paste a formula across a row or down a column, an...

Q:

I need your help with this: Can you please quote from the attached chapters / resource if possible? Corporations often use different costs of capital for different operating divisions. Using an...

Q:

Use the graph to state the absolute and local maximum and minimum values of the function. 5. y= f(x) 6. y= f(x)

Q:

What are the basic inherent risks associated with sales and accounts receivable?

Q:

Time left 0 : 4 4 : 3 6 uestion 7 ot yet The estimated life of a building that has been depreciated for 3 0 years of an originally estimated nswered life of 5 0 years has been revised to a remaining...

Q:

Describe how total variable costs and unit variable costs behave with changes in the level of activity. If fixed costs increase, what would be the impact on the contribution margin and income from...