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The Average Annual Return Over the Period 1886-2006 for Stocks

Question 35

Multiple Choice

The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 10.5%,and the standard deviation of returns is 18.5%.Based on these numbers,what is a 95% confidence interval for 2007 returns?


A) -18.5%,18.5%
B) -10%,10%
C) -26.5%,47.5%
D) -37%,37%
E) -8%,29%

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