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%

---

Definitions:

Capital Structure

The mix of different forms of financing used by a company to fund its overall operations and growth, including debt and equity.

Floatation Expenses

The costs associated with issuing new securities in the market, including underwriting, legal, and registration fees.

Book Value

The net value of a company's assets found on its balance sheet, calculated by subtracting liabilities from the total assets.

Market Values

The current prices at which assets, securities, commodities, or services can be bought or sold in a marketplace, emphasizing the plural to encompass a range of values across various markets.