The Ishares Bond Index fund (TLT)has a mean and annual standard deviation of returns of 7% and 10%,respectively.What is the 66% confidence interval for the returns on TLT?
A)-5%,10%
B)7%,10%
C)-3%,17%
D)-10%,10%
E)-5%,15%

Question

Quizplus · Accepted Answer

The 66% confidence interval can be calculated as the mean +/- 1 standard deviation. Using the given mean and annual standard deviation, we get:
Lower bound = 7% - (1 x 10%) = -3%
Upper bound = 7% + (1 x 10%) = 17%
Therefore, the 66% confidence interval for TLT returns is -3% to 17%. The correct answer choice is C.

The Ishares Bond Index Fund (TLT)has a Mean and Annual