You observe a portfolio for five years and determine that its average return is 12.8%...
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Accounting
You observe a portfolio for five years and determine that its average return is
12.8%
and the standard deviation of its returns in
19.3%.
Would a 30% loss next year be outside the 95% confidence interval for this portfolio?
The low end of the 95% prediction interval is
nothing%.
(Enter your response as a percent rounded to one decimal place.)
A.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%.
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 greater 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 greater than
30%.
D.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%.
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