You observe a portfolio for five years and determine that its average return is 11.87% and the standard deviation of its returns is 19.28%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Round to two decimal places.)

You observe a portfolio for five years and determine that its average return is 11.87% and the standard deviation of its returns is 19.28%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Round to two decimal places.)

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 16P: The following table reports the percentage of stocks in a portfolio for nine quarters: a. Construct...

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