2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 23.6% 46.3% 24.7% 26.7% 30.5% 86.9% 9.0% 23.1% -2.0% 0.2% -17.3% -3.2% -24.3% -27.0% 32.2% 27.9% 4.4% -5.1% 7.4% -11.3% Suppose that you want to use the 10-year historical average return on Stock A to forecast the expected future return on Stock A. The 95% confidence interval for your estimate of the expect return is closest to:
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 23.6% 46.3% 24.7% 26.7% 30.5% 86.9% 9.0% 23.1% -2.0% 0.2% -17.3% -3.2% -24.3% -27.0% 32.2% 27.9% 4.4% -5.1% 7.4% -11.3% Suppose that you want to use the 10-year historical average return on Stock A to forecast the expected future return on Stock A. The 95% confidence interval for your estimate of the expect return is closest to:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Use the table for the question(s) below.
Consider the following realized annual returns:
Index
Stock A
Year End Realized.
Realized
Return
Return
23.6%
46.3%
24.7%
26.7%
30.5% 86.9%
9.0%
23.1%
-2.0%
0.2%
-17.3% -3.2%
-24.3%
-27.0%
32.2%
27.9%
4.4%
-5.1%
7.4% -11.3%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Suppose that you want to use the 10-year historical average return on Stock A to forecast the
expected future return on Stock A. The 95% confidence interval for your estimate of the expect
return is closest to:
O 6.5% to 26.3%.
O-15.0% to 47.9%.
-4.5% to 37.4%.
13.2% to 19.5%.
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