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(Solved): You observe a portfolio for five years and determine that its average return is 11.6% and the stan ...

You observe a portfolio for five years and determine that its average return is

`11.6%`

and the standard deviation of its returns in

`19.6%`

. Would a

`30%`

loss next year be outside the

`95%`

confidence interval for this portfolio? The low end of the

`95%`

prediction interval is %. (Enter your response as a percent rounded to one decimal place.) A. No, you cannot be confident that the portfolio will not lose more than

`30%`

of its value next year. This is because the low end of the prediction interval is greater than

`-30%`

. B. Yes, you can be confident that the portfolio will not lose more than

`30%`

of its value next year. This is because the low end of the prediction interval is greater than

`-30%`

. C. Yes, you can be confident that the portfolio will not lose more than

`30%`

of its value next year. This is because the low end of the prediction interval is less than

`-30%`

. D. No, you cannot be confident that the portfolio will not lose more than

`30%`

of its value next year. This is because the low end of the prediction interval is less than

`-30%`

.You observe a portfolio for five years and determine that its average return is 11.6​% and the standard deviation of its returns in 19.6​%. Would a​ 30% loss next year be outside the​ 95% confidence interval for this​ portfolio?

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