Use the Table for the Question(s)below

question 103

Multiple Choice

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 Index to forecast the expected future return on the Index.The 95% confidence interval for your estimate of the expect return is closest to:

• A)-9.6% to 27.3%.
• B)6.8% to 10.7%.
• C)-3.5% to 21.1%.
• D)4.9% to 12.7%.

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Definitions:

Zagros Mountains

A mountain range in Iran, characterized by its rich history of geological activity including orogeny and seismic activity.

Persian Gulf

A shallow arm of the Arabian Sea between Iran and the Arabian peninsula, known for its extensive oil reserves.

Island Arcs

Chains of volcanic islands that form along subduction zones where one oceanic plate subducts beneath another.

Ocean-ocean Convergent

A tectonic boundary where two oceanic plates collide, typically resulting in the subduction of one plate beneath the other and often forming volcanic island arcs.