Answer: -6.69% and 5.19%

## Explanation To calculate the 95% confidence interval for the mean return using a t-distribution: **Step 1: Identify the degrees of freedom** - Sample size (n) = 12 monthly returns - Degrees of freedom (df) = n - 1 = 12 - 1 = 11 **Step 2: Find the critical t-value** - For a 95% confidence interval with two-tailed test, α = 0.05 (5% significance level) - From the t-table, for df = 11 and α = 0.025 (since it's two-tailed, we use α/2 = 0.025): - t-critical = 2.201 **Step 3: Calculate the margin of error** - Margin of error = t-critical × standard error - Margin of error = 2.201 × 2.70% = 5.9427% **Step 4: Construct the confidence interval** - Lower bound = sample mean - margin of error = -0.75% - 5.9427% = -6.6927% ≈ -6.69% - Upper bound = sample mean + margin of error = -0.75% + 5.9427% = 5.1927% ≈ 5.19% Therefore, the 95% confidence interval is **-6.69% to 5.19%**, which corresponds to option A. **Verification:** - The calculation matches option A exactly - Options B, C, and D show different ranges that don't match the correct calculation

Author: LeetQuiz .