Assume That the Average Annual Historical Return for Shares That

question 39

Multiple Choice

Assume that the average annual historical return for shares that comprise the Australian All Ordinaries index is 10%, and the standard deviation of returns is 20%. Based on these numbers, what is a 95% prediction interval for 2016 returns?

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

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Definitions:

Ulcerations

The formation of open sores on the skin or mucous membranes, often resulting from inflammation or infection.

Digestive System

An organ system that breaks down food into absorbable units to provide energy and nutrients to the body while disposing of waste products.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine, where most of the digestion and absorption of nutrients occurs.

Large Intestine

The final section of the digestive system, responsible for water absorption and the formation of feces.