Use the Table for the Question(s)below

question 103

Multiple Choice

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 the Index to forecast the expected future return on the Index.The 95% confidence interval for your estimate of the expect return is closest to:

• A)-9.6% to 27.3%.
• B)6.8% to 10.7%.
• C)-3.5% to 21.1%.
• D)4.9% to 12.7%.

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Definitions:

Half-lives

The time required for half of a particular substance or entity to undergo a process, such as radioactive decay.

Dike Unit

A geological feature consisting of a vertical or steeply inclined sheet of rock that formed from magma intruding into cracks or fissures within the earth's crust.

Mortality Table

A statistical table showing the probability of death for individuals at each age, used by insurance companies to determine premiums.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.