(Solution Library) Consider the following realized annual returns: Year End Market Realized Return Microsoft Realized Return 1996 21.2% 88.3% 1997 30.3% 56.4%
Question: Consider the following realized annual returns:
| Year End | Market Realized Return | Microsoft Realized Return |
| 1996 | 21.2% | 88.3% |
| 1997 | 30.3% | 56.4% |
| 1998 | 22.3% | 114.6% |
| 1999 | 25.3% | 68.4% |
| 2000 | -11.0% | -62.8% |
| 2001 | -11.3% | 52.7% |
| 2002 | -20.8% | -22.0% |
| 2003 | 33.1% | 6.9% |
| 2004 | 13.0% | 9.2% |
| 2005 | 7.3% | -0.9% |
Suppose that you want to use the 10 year historical average return on Microsoft to forecast the expected future return on Microsoft.
Required: Calculate the 95% confidence interval for your estimate of the expected return. (6 marks)
Deliverable: Word Document 
Solution: Consider the following returns: Lowes Home Depot IBM
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