Suppose That You Want to Use the 10 Year Historical

question 14

Multiple Choice

Suppose that you want to use the 10 year historical average return on IBM to forecast the expected future return on IBM.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) -15.1% to 47.8%

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