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

question 20

Multiple Choice

The average annual return for the S&P 500 from 1886 to 2006 is 9.5%, with a standard deviation of 18%. Based on these numbers, what is a 95% confidence interval for 2007's returns?

• A) -13.25%, 22.75%
• B) -16.5%, 35.5%
• C) -26.5%, 45.5%
• D) -11.5%, 30.5%