The Ishares Bond Index Fund (TLT) Has a Mean and Annual

question 49

Multiple Choice

The Ishares Bond Index fund (TLT) has a mean and annual standard deviation of returns of 5% and 10%, respectively. What is the 66% confidence interval for the returns on TLT?

• A) -7%, 10%
• B) 5%, 10%
• C) -5%, 15%
• D) -10%, 10%

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Definitions:

Education Fund

A savings or investment account set aside for the purpose of funding educational expenses.

Compounded Semi-annually

The process of calculating interest on both the initial principal and the accumulated interest of previous periods of a deposit or loan on a twice-a-year basis.

Monthly Payments

Payments required to be made every month, often in the context of loan repayments, utility bills, or subscription services.

Mortgage Loan

A specific type of loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty.