Question

Year EndMarket Realized ReturnMicrosoft Realized Return

1996  21.20% 88.30%

1997 30.30% 56.40%

1998 22.30% 114.60%

1999 25.30% 68.40%

2000 -11.00% -62.80%

2001 -11.30% 52.70%

2002 -20.80% -22.00%

2003 33.10% 6.90%

200413.00%9.20%

2005 7.30% -0.90%

Suppose that you want to use the 10 year historical average return on Microsoft to forecast the expected future return on Microsoft. Required:

1#: Calculate the 95% confidence interval for your estimate of the expected return.

(PLEASE provide formulas, Step-by-step process for all sections/parts, **don't use spreadsheet, I need to see the complete work out for all parts**)

Answer 1