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Use the Table for the Question(s)below

Question 31

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns: Use the table for the question(s) below. Consider the following realized annual returns:   -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: A) 13.2% to 19.5%. B) -4.5% to 37.4%. C) 6.5% to 26.3%. D) -15.0% to 47.9%.
-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:


A) 13.2% to 19.5%.
B) -4.5% to 37.4%.
C) 6.5% to 26.3%.
D) -15.0% to 47.9%.

Correct Answer:

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