During 1982-1997, Stock Prices Increased Substantially

question 400

Multiple Choice

During 1982-1997, stock prices increased substantially. Which of the following helped to boost stock prices during this period?

• A) higher interest rates and rapid growth of corporate profits
• B) lower interest rates and rapid growth of corporate profits
• C) higher interest rates and slow growth of corporate profits
• D) lower interest rates and slow growth of corporate profits

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Definitions:

Population

The entire aggregation of items from which samples can be drawn for statistical measurement or inference.

Normal Distribution

A statistical distribution that is uniform around the average, indicating that observations close to the mean are more common than observations distant from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; used in finance to quantify the risk of an investment.

Capital Gain

The profit earned from the sale of an asset, such as stocks or real estate, which exceeds its purchase price.