Use the Table for the Question(s) Below

question 25

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 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:

• A) -10.6% to 28.2%
• B) 6.8% to 10.7%
• C) -37.0% to 47.6%
• D) 4.9% to 12.7%

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