Using the Rule of 70, If the GDP Per Capita

question 83

Multiple Choice

Using the rule of 70, if the GDP per capita growth rate in the United States is 3.5 percent, standards of living double every

• A)20 years.
• B)24.5 years.
• C)35 years.
• D)70 years.

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Definitions:

Cumulative Abnormal Returns

The aggregate difference in an asset’s observed versus expected returns over a specific timeframe, often used to assess impact of an event.

Takeover Announcement

A public declaration that a company intends to acquire another company, often triggering changes in the stock prices of both companies involved.

Strong-form Efficient

A theory suggesting that all information, public and private, is fully reflected in stock prices, and that it is impossible to consistently achieve higher returns.

Semistrong-form Efficient

Refers to a market efficiency form where prices include all publicly available information, including both historical and newly released financial data.