Suppose that you want to use the 10 year historical average return on the S&P 500 to forecast the expected future return on the S&P 500.The 95% confidence interval for your estimate of the expect return is closest to:

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D) R_annual= 11ea7e5a_6e5b_125f_9a0a_0fc5f8467871_TB1623_11 = 11ea7e5a_6e5b_1260_9a0a_6d898e0832f2_TB1623_11 = 8.82% 11ea7e5a_6e5b_1261_9a0a_b768fb7b33a0_TB1623_00 Variance = SUM of (R - R)²/ (T - 1) = 0.3405116 / 9 = 0.0378346 Standard deviation = 11ea7e5a_6e5b_3972_9a0a_f7387bf9a7b6_TB1623_11 = 11ea7e5a_6e5b_3973_9a0a_1dd7adc758c1_TB1623_11 = 0.1945112 Standard error = Standard Deviation / 11ea7e5a_6e5b_3974_9a0a_95d0392226ee_TB1623_11 = 0.1945112 / 11ea7e5a_6e5b_3975_9a0a_8135c755a933_TB1623_11 = .061510 or 6.15% 95% Confidence Interval = mean return + or - 2 standard errors, so lower bound = .0882 - 2 × .0615 = -0.0348 upper bound = .0882 + 2 × .0615 =0.2112

Suppose That You Want to Use the 10 Year Historical