The Average Annual Return Over the Period 1926-2009 for Small

question 85

Multiple Choice

The average annual return over the period 1926-2009 for small stocks is 21.2%, and the standard deviation of returns is 21.2%. Based on these numbers, what is a 95% confidence interval for 2010 returns?

• A) -10.6%, 31.8%
• B) 0%, 42.4%
• C) -21.2%, 42.4%
• D) -21.2%, 63.6%

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