For the Period 1926-2018, the Annual Return on Large-Company Stocks

question 40

Multiple Choice

For the period 1926-2018, the annual return on large-company stocks:

• A)was negative following every three-year period of positive returns.
• B)was only negative for two or more consecutive years during the Great Depression.
• C)remained negative for at least two consecutive years anytime that it was negative.
• D)never exceeded a positive 30 percent nor lost more than 20 percent.
• E)was unpredictable based on the prior year's performance.

---

Definitions:

Dense

Having a high mass per unit volume; closely compacted in substance.

Arête

A sharp, narrow ridge found in rugged mountains, formed by the erosion of two glaciers side by side.

Depression

In geology, a landform sunk below its surroundings, forming a low area which can be natural or man-made.

Valley

A low area between hills or mountains, typically with a river running through it.