Question

Velma Vasquez, fund manager of the Vasquez Value Fund, manages a portfolio of 160 common stocks. Velma relies on various statistics, such as variance, to assess the overall risk of stocks in an economic sector. Her staff reported that for a sample 15 utility stocks the mean annualized return was 14% and that the variance was 4%. Assume that annualized returns are normally distributed. The 95% confidence interval for the population variance of annualized returns is _______.

Group of answer choices

0.016 to 0.075

0.016 to 0.078

0.018 to 0.064

0.024 to 0.085

0.017 to 0.065

Answer 1