What Has Been the Standard Deviation of Returns of Common

question 13

Multiple Choice

What has been the standard deviation of returns of common stocks during the period between 1900 and 2006?

• A) 19.8%
• B) 33.4%
• C) 8.1%
• D) 7.8%

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Definitions:

Capability Index

A statistical tool used to determine the capability of a manufacturing process to meet its specified limits.

Process

A series of actions or steps taken in order to achieve a particular outcome or result.

Capability Index

A statistical measure that quantifies the performance of a process in relation to specified limits or specifications.

Measurements

The act of determining the size, quantity, or degree of something typically using specific instruments or techniques.