Use the Table for the Question(s)below

question 18

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 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%.

---

Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced within a country's borders in a given period of time in real terms.

Define GDP

Gross Domestic Product (GDP) represents the overall market or monetary value of all finished goods and services produced inside a nation's boundaries over a certain period.

Capital Equipment

Long-term assets, such as machinery and buildings, used in the production of goods and services.

Investment

Allocation of resources, such as capital, to assets that are expected to generate returns over time.