The Ishares Bond Index Fund (TLT) Has a Mean and Annual

question 49

Multiple Choice

The Ishares Bond Index fund (TLT) has a mean and annual standard deviation of returns of 5% and 10%, respectively. What is the 66% confidence interval for the returns on TLT?

• A) -7%, 10%
• B) 5%, 10%
• C) -5%, 15%
• D) -10%, 10%

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Definitions:

Normal Balance

The expected debit or credit balance a particular account should hold under double-entry bookkeeping.

Financial Statement

A written record that conveys the business activities and financial performance of a company, including balance sheets and income statements.

Permanent/Temporary

Classification of accounts where permanent accounts refer to items on the balance sheet and temporary accounts to items that pertain to the income statement.

Normal Balance

The side (debit or credit) of an accounting entry where increases to the account are recorded, depending on the type of account.