When Viewing the Long-Term Trend of Volatility in U

question 113

Multiple Choice

When viewing the long-term trend of volatility in U.S.stocks, it is readily apparent that:

• A)Volatility has continually increased
• B)Volatility has continually decreased
• C)Volatility has offered little discernable trend
• D)Volatility has remained constant for years

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Definitions:

Average Investment

The mean value of all investments held over a specific period, used to assess overall investment performance.

Estimated Average Annual Income

An approximation of the amount of money an individual or business expects to earn in an average year.

Straight-Line Method

A method of amortizing a bond discount or premium that provides for equal amounts of discount (or premium) to be written off to interest expense each period.

Useful Life

The estimated period of time over which an asset is expected to be usable by the entity, used for the purposes of depreciation or amortization.