You observe a portfolio for five years and determine that its average return is 11.6%...
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Finance
You observe a portfolio for five years and determine that its average return is 11.6% and the standard deviation of its returns in 19.2%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio?
The low end of the 95% prediction interval is __%
A. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than 30%.
B.No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than 30%.
C.Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than 30%.
D.No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than 30%.
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