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finance data bank

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Question;Use the table;for the question(s) below.;Consider the;following realized annual returns;Year End;Index;Realized Return;Stock;A Realized Return;2000;23.6%;46.3%;2001;24.7%;26.7%;2002;30.5%;86.9%;2003;9.0%;23.1%;2004;-2.0%;0.2%;2005;-17.3%;-3.2%;2006;-24.3%;-27.0%;2007;32.2%;27.9%;2008;4.4%;-5.1%;2009;7.4%;-11.3%;10) The average;annual return on the Index from 2000 to 2009 is closest to;A) 7.10%;B) 4.00%;C) 9.75%;D) 8.75%;12) The variance;of the returns on the Index from 2000 to 2009 is closest to;A).0450;B).3400;C).1935;D).0375;13) The variance;of the returns on Stock A from 2000 to 2009 is closest to;A).3145;B).0990;C).1100;D).9890;14) The standard;deviation of the returns on the Index from 2000 to 2009 is closest to;A) 19.5%;B) 20.5%;C) 3.8%;D) 8.8%;15) The standard;deviation of the returns on Stock A from 2000 to 2009 is closest to;A) 33.2%;B) 16.4%;C) 31.5%;D) 11.0%;16) Suppose that;you want to use the 10 year historical average return on the Index to forecast;the expected future return on the Index.;The standard error of your estimate of the expect return is closest to;A) 19.4%;B) 3.8%;C) 8.8%;D) 1.95%;17) Suppose that;you want to use the 10 year historical average return on Stock A to forecast;the expected future return on Stock A.;The standard error of your estimate of the expect return is closest to;A) 16.4%;B) 3.32%;C) 3.15%;D) 33.20%;18) Suppose that;you want to use the 10 year historical average return on the Index to forecast;the expected future return on the Index.;The 95% confidence interval for your estimate of the expect return is closest;to;A) -10.6% to;28.2%;B) 6.8% to 10.7%;C) -37.0% to;47.6%;D) 4.9% to 12.7%;19) Suppose that;you want to use the 10 year historical average return on Stock A to forecast;the expected future return on Stock A.;The 95% confidence interval for your estimate of the expect return is;closest to;A) 13.2% to;19.5%;B) 10.1% to;22.7%;C);6.5% to 26.3%;D) -15.1% to;47.8%;20) The;geometric average annual return on the Index from 2000 to 2009 is closest to;A) 9.75%;B) 8.75%;C) 7.10%;D) 8.35%;21) The geometric;average annual return on Stock A from 2000 to 2009 is closest to;A) 12.4%;B) 16.7%;C) 13.2%;D) 17.8%

 

Paper#51011 | Written in 18-Jul-2015

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