The Following Data Is Provided for the S&P 500 Index

question 43

Multiple Choice

The following data is provided for the S&P 500 Index:
-Refer to the information above. Calculate the 10-year arithmetic average annual rate of return on the 500 Index.

• A)5.91%
• B)7.23%
• C)6.98%
• D)8.11%

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Definitions:

Slope-Intercept Form

A linear equation of the form y = mx + b, where m is the slope and b is the y-intercept.

Equation

A statement that asserts the equality of two expressions, usually represented by the symbol "=".

Slope-Intercept Form

A way of writing the equation of a line as y = mx + b, where m is the slope and b is the y-intercept.

Slope

The measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.