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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%

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%

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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37.

Subject : -  Finance

 

 
You observe a portfolio for five years and determine that its average return is 11.5% and the standard deviation of its returns in 19.4%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is a percent rounded to one decimal place.) %. (Enter your response as A. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than - 30%. B. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than - 30%. C. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than - 30%. D. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than - 30%.
Transcribed Image Text:You observe a portfolio for five years and determine that its average return is 11.5% and the standard deviation of its returns in 19.4%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is a percent rounded to one decimal place.) %. (Enter your response as A. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than - 30%. B. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than - 30%. C. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than - 30%. D. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than - 30%.
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