Which of the Following Is a Conclusion That Can Be

question 36

Multiple Choice

Which of the following is a conclusion that can be drawn from the historical return data presented in this chapter?

• A)An investment in individual stocks tends to be riskier than investing in a stock market index.
• B)An investment in an individual stock would have provided you with a higher return than an investment in bonds, but you would have earned an even higher return by investing in
• The S&P 500 Index.
• C)An investment in any of the individual stocks would have provided you with higher returns than you would have earned by investing in a stock market index or in bonds.
• D)Both A and C are true.

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Definitions:

Empirical Economics

The branch of economics that analyzes data to develop verifiable theories or evaluate economic policies.

Economic History

The study of economies or economic phenomena in the past.

Aggregate Price Level

A measure of the overall level of prices of goods and services in an economy over a specified period, often used as an indicator of inflation.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on aggregate phenomena such as GDP, unemployment rates, and inflation.