Use the Table for the Question(s)below

question 96

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 Stock B to forecast the expected future return on Stock B.Calculate the 95% confidence interval for your estimate of the expect return.

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Definitions:

Put-call Ratio

A metric used to measure market sentiment by dividing the number of traded put options by the number of traded call options.

Breadth

The extent to which movements in the broad market index are reflected widely in movements of individual stock prices.

Confidence Index

Ratio of the yield on top-rated corporate bonds to the yield on intermediate-grade bonds.

Blue-chip Stock

Stocks of large, reputable, and financially sound companies with a history of reliable growth and dividend payments.