37.Subject : - Finance You observe a portfolio for five years and determine that its average return is11.5% and the standard deviation of its returns in 19.4%. Would a 30% lossnext year be outside the 95% confidence interval for this portfolio?The low end of the 95% prediction interval isa percent rounded to one decimal place.)%. (Enter your response asA. No, you cannot be confident that the portfolio will not lose more than30% of its value next year. This is because the low end of theprediction interval is less than - 30%.B. Yes, you can be confident that the portfolio will not lose more than30% of its value next year. This is because the low end of theprediction interval is less than - 30%.C. Yes, you can be confident that the portfolio will not lose more than30% of its value next year. This is because the low end of theprediction interval is greater than - 30%.D. No, you cannot be confident that the portfolio will not lose more than30% of its value next year. This is because the low end of theprediction interval is greater than - 30%.

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Answered: be outside the 95% confidence interval…

MATLAB: An Introduction with Applications

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Author:Amos Gilat

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Hi! I was working on the question below: The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 14.7% (i.e. an average gain of 14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn’t change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. And question (a) looks like: What percent of years does this portfolio lose money, i.e. have a return less than 0%? I got a z-score of -0.4455, which corresponds to the p value of 0.3264 on the z-table; I don't understand why the correct answer should be 0.3280 as said by one of the solutions, and I cannot locate such a number on the z-table. Thank you so much!
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Refer to the image
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be outside the 95% confidence interval for this portfolio? nd of the 95% prediction interval is%. (Enter your res rounded to one decimal place.) , you cannot be confident that the portfolio will not loser % of its value next year. This is because the low end of t diation interval is loss than 30%