Assume that long-term corporate bonds had an average return of 6.3 percent and a

Question

1. Assume that long-term corporate bonds had an average return of 6.3 percent and a standard deviation of 8.3 percent for a 30-year period. What range of returns would you expect to see on these bonds 68 percent of the time? -2.0 percent to 14.6 percent -2.0 percent to 22.9 percent -10.3 percent to 14.6 percent -10.3 percent to 17.4 percent -10.3 percent to 22.9 percent

Assume that long-term corporate bonds had an average return of 6.3 percent and a standard deviation of 8.3 percent for a 30-year period. What range of returns would you expect to see on these bonds 68 percent of the time? -2.0 percent to 14.6 percent -2.0 percent to 22.9 percent -10.3 percent to 14.6 percent -10.3 percent to 17.4 percent -10.3 percent to 22.9 percent Assume that long-term corporate bonds had an average return of 6.3 percent and a standard deviation of 8.3 percent for a 30-year period. What range of returns would you expect to see on these bonds 68 percent of the time? -2.0 percent to 14.6 percent -2.0 percent to 22.9 percent -10.3 percent to 14.6 percent -10.3 percent to 17.4 percent -10.3 percent to 22.9 percent -2.0 percent to 14.6 percent -2.0 percent to 22.9 percent -10.3 percent to 14.6 percent -10.3 percent to 17.4 percent -10.3 percent to 22.9 percent

Explanation / Answer

z value for 68% confidence interval = 1

confidence interval = mean+-z*std deviation = 6.3% +-1*8.3%=( -2%,14.6%)

-2.0 percent to 14.6 percent

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