The Average Annual Return for the S&P 500 from 1886

question 90

Multiple Choice

The average annual return for the S&P 500 from 1886 to 2006 is 5%, with a standard deviation of 15%. Based on these numbers, what is a 95% confidence interval for 2007's returns?

• A) -12.5%, 17.5%
• B) -15%, 25%
• C) -25%, 35%
• D) -25%, 25%

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