From 1950 to 2007, the Average Return in the Stock

question 57

Multiple Choice

From 1950 to 2007, the average return in the stock market, as measured by the S&P 500, was 13.2 percent and a standard deviation of 17 percent. Given this information, which of the following statements is correct?

• A) With an average return this high, it is unlikely that an investor will lose money in the stock market in the next year or two.
• B) With a standard deviation this high, it is likely that an investor will lose money in some years over a 25-year investment period.
• C) This investment is not very good since the standard deviation is greater than the average return.
• D) All of these choices are correct.

Recognize the influence of global trends on Canadian HR policies and practices.

Learn the sources of information for HR professionals and their reliability.

Understand the impact of the labour market on organizational strategy.

Apprehend the importance of timely information for competitive advantage.

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Definitions:

Median Cubital Vein

A superficial vein of the upper limb, often used for venipuncture (drawing blood), located at the front of the elbow.

Suprarenal Vein

A vein draining blood from the adrenal gland into the renal vein or inferior vena cava.

Internal Jugular Vein

A major vein that collects blood from the brain, face, and neck, and returns it to the heart.