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Confidence interval of returns over the next year

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A stock's returns are normally distributed with a mean of 10% pa and a standard deviation of 20 percentage points pa. What is the 95% confidence interval of returns over the next year?

Note that the Z-statistic corresponding to a one-tail:

• 90% normal probability density function is 1.282.

• 95% normal probability density function is 1.645.

• 97.5% normal probability density function is 1.960. The 95% confidence interval of annual returns is between:

Reference no: EM132546596

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