Please show work for problems A-E. The correct answers are highlighted in yellow
ID: 2784932 • Letter: P
Question
Please show work for problems A-E. The correct answers are highlighted in yellow. Please show all work. Thank you!
Q4) A stock has an expected return of 05.80% and a standard deviation of 14.53%. For this stock, what are the: a) Upper range of 68% confidence interval (0.5 points) b) Lower range of 68% confidence interval: (0.5 points) c) Upper range of 95% confindence interval: (0.5 points) d) Lower range of 95% confidence interval: (0.5 points) e) Upper range of 99% confidence interval: (0.5 points) Lower range of 99% confindence interval: (0.5 points) 75.43% 63.25% 100 00% 89.34% 100 020 9430.00% 20.33% -8.73% 34.36% -23.26% 49.39% -37.79%Explanation / Answer
or the question one has to understand that :
68%= 1 standard deviation
95% = 2 satndard deviation
99% = 3 stadard deviation
a) = 5.80+(1*14.53)=20.33
b)5.80-(1*14.53)=-8.73%
c)5.80+(2*14.53)=34.86%
d)5.80-(2*14.53)=-23.26
e)5.80+(3*14.53)=49.39
f) =5.8-(3*14.53)=-37.79%