Use the given historical data over the 1926-2000 period to answer the following question.
Asset Average Return Standard Deviation
Large-company stocks 13.0% 20.2%
Small-company stocks 17.3% 33.4%
Long term government bonds 5.7% 9.4%
Us Treasury Bills 3.9% 3.2%
If the returns on large company stocks are normally distributed, for which of the following returns can you not state, with 95% confidence that next years stock return might be equal to? Show your work.
a. -30.4%
b. -25.6%
c. 20.3%
d. 33.5%
e. 52.0%