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:

Histrionic Personality Disorder

A mental disorder characterized by a pattern of excessive emotional expression and attention-seeking behaviors.

Borderline Personality Disorder

A disorder of the mind that manifests through unpredictable mood swings, actions, and social interactions.

Distinguish

To recognize or identify as separate and distinct.

Obsessive-Compulsive Disorder

A mental disorder characterized by recurrent, unwanted thoughts (obsessions) and/or repetitive behaviors (compulsions).