Use the Table for the Question(s) Below

question 8

Essay

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 Market to forecast the expected future return on the S&P 500.Calculate the 95% confidence interval for your estimate of the expect return.

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Definitions:

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country.

Invisible Hand

A metaphor introduced by Adam Smith to describe how an individual's pursuit of self-interest in a free-market economy inadvertently benefits society as a whole.

Allocation of Resources

The process of allocating resources among competing uses or projects in order to achieve desired outcomes.

Poverty Rate

The percentage of the population whose family income falls below an absolute level called the poverty line.