The Average Annual Return Over the Period 1886-2006 for Stocks

question 4

Multiple Choice

The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 10%,and the standard deviation of returns is 20%.Based on these numbers,what is a 95% confidence interval for 2007 returns?

• A)-15%,25%
• B)-20%,40%
• C)-30%,50%
• D)-30%,40%
• E)-10%,30%

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Definitions:

Hypothalamus

A region of the brain that controls autonomic functions and plays a crucial role in hormone regulation and appetite.

Calcitonin

A hormone produced by the thyroid gland that helps regulate calcium levels in the blood.

Thyroid Gland

A butterfly-shaped gland located in the front part of the neck that produces thyroid hormones, which regulate the body's metabolism, energy, and growth.

Follicles

Follicles are small sacs within the ovaries in females or hair follicles in the skin, involved in oocyte development or hair growth.