Which of the following have the lower bound of the estimated range greater than 18.00%?

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
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You are choosing between these four investments, and you want to be 95% certain that you do not lose more than
18.00% on your investment. Which investments could you choose?
Average Return
Standard Deviation of Returns
S&P TSX
10.32%
16.35%
S&P 500 in CAD
12.10%
17.00%
Long-Term Gov't of Canada Bonds
7.89%
10.20%
Which of the following have the lower bound of the estimated range greater than 18.00%?
A. All of the Investments
B. T-Bills only
C. S&P TSX and S&P 500 in CAD
D. Long-term Government of Canada Bonds and S&P 500 in CAD
E. Long-term Government of Canada Bonds and T-Bills
T-Bills
5.59%
3.93%
Transcribed Image Text:You are choosing between these four investments, and you want to be 95% certain that you do not lose more than 18.00% on your investment. Which investments could you choose? Average Return Standard Deviation of Returns S&P TSX 10.32% 16.35% S&P 500 in CAD 12.10% 17.00% Long-Term Gov't of Canada Bonds 7.89% 10.20% Which of the following have the lower bound of the estimated range greater than 18.00%? A. All of the Investments B. T-Bills only C. S&P TSX and S&P 500 in CAD D. Long-term Government of Canada Bonds and S&P 500 in CAD E. Long-term Government of Canada Bonds and T-Bills T-Bills 5.59% 3.93%
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