Assume That Large-Company Stocks Had an Average Return of 12

question 58

Multiple Choice

Assume that large-company stocks had an average return of 12.1 percent and a standard deviation of 19.6 percent for a 40-year period.What range of returns would you expect to see on these stocks 95 percent of the time?

• A)-30.3 percent to 53.2 percent
• B)-30.3 percent to 73.9 percent
• C)-30.3 percent to 64.1 percent
• D)-27.1 percent to 53.2 percent
• E)-27.1 percent to 51.3 percent

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Definitions:

Encoding

The process by which information is transformed into a format that can be stored in memory.

Retrieval

The process of recalling information, experiences, and memories stored in the brain.

Storage

The process of retaining encoded information over time in the memory.

Explicit Memory

Explicit memory is a type of long-term memory that involves conscious recollection of factual information, previous experiences, and concepts.