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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%

Correct Answer:

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