You observe a portfolio for five years and determine that its average return is 12.68% and the standard deviation of its returns is 19.66%. 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 12.68% and the standard deviation of its returns is 19.66%. 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.)

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter9: Forecasting Exchange Rates

Section: Chapter Questions

Problem 6BIC

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