Use the Table for the Question(s)below

question 64

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:

-The average annual return over the period 1926-2009 for the S&P 500 is 11.7%,and the standard deviation of returns is 20.5%.Based on these numbers,what is a 95% confidence interval for 2010 returns?

• A)1.5%,,22.0%
• B)-8.8%,32.2%
• C)-29.3%,52.7%
• D)-29.3%,73.2%
• E)-14.4%,26.2%

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Definitions:

Bootstrapping

Funding a business startup or growth through internal cash flow and without external investment.

Expand

To increase in size, volume, number, or scope.

Outside Investors

Individuals or entities that invest capital in a business but are not part of its daily operations or management.

Penny Pinching

A term used to describe the act of being very careful with money and spending it sparingly.