Observe portfolio for five year

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You observe a portfolio for five year and determine that its average return is 12.0?% and the standard deviation of its returns in 20.0?%. Would a? 30% loss next year be outside the? 95% confidence interval for this? portfolio?

The low end of the? 95% prediction interval is (      ) %.

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. 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%.

D. 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%.

Reference no: EM131996261

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