From 1950 to 2007, the Average Return in the Stock

question 75

Multiple Choice

From 1950 to 2007, the average return in the stock market, as measured by the S&P500, was 13.2% and a standard deviation of 17%. Given this information, which of the following statements is correct?

• A) With an average return this high, it is unlikely that an investor will lose money in the stock market in the next year or two.
• B) With a standard deviation this high, it is likely that an investor will lose money in some years over a 25-year investment period.
• C) This investment is not very good since the standard deviation is greater than the average return.
• D) All of these statements are correct.

Understand the developmental trajectory of sensation seeking across different life stages.

Identify the correlation between sensation seeking and other personality factors.

Grasp the methods used in personality research, particularly in studying sensation seeking.

Understand the impact of a person's lifestyle choices on their happiness and well-being.

---

Definitions:

Quick Ratio

A measure of a company's short-term liquidity, calculating its ability to meet short-term obligations with its most liquid assets.

Financial Statements

Compiled financial data reports that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Inventory Turnover Ratio

A metric indicating how often a company's inventory is sold and replaced over a specific period.