11.2-33 Question Help The average annual return over the period 1886-2006 for stocks that comprise the...

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11.2-33 Question Help The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 5%, and the

business finance

Answer 1

Answer #1

Answer is Option D

Based on the 68-95-99 rule,

68% 95% 99% -16 +16 +26 +30

Based on this,

Return interval = Return% +/- 2 * Standard deviation

Return interval = 5% +/- 2 * 15%

Lower interval = 5% - 30% = -25%

Higher interval = 5% + 30% = 35%

Answer 2

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