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The average annual retum over the period 1886-2006 for stocks that comprise the S&P 500 is 8%, and the standard deviation of retums is 25%. Based on these numbers what is a 95% confidence interval for 2007 returns? OA -27%, 43% OB. -32%, 48% OC. -42%, 58% D. -21%, 29%

The average annual retum over the period 1886-2006 for stocks that comprise the S&P 500 is 8%, and the standard deviation of retums is 25%. Based on these numbers what is a 95% confidence interval for 2007 returns? OA -27%, 43% OB. -32%, 48% OC. -42%, 58% D. -21%, 29%

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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The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 8%, and the standard deviation of retums is 25%. Based on these numbers what is a 95% confidence interval for 2007 returns? OA -27%, 43% OB. -32%, 48% OC. -42%, 58% D. -21%, 29%
Transcribed Image Text:The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 8%, and the standard deviation of retums is 25%. Based on these numbers what is a 95% confidence interval for 2007 returns? OA -27%, 43% OB. -32%, 48% OC. -42%, 58% D. -21%, 29%
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