Since About 1900,the Standard Deviation of Annual Returns on a Portfolio

question 22

Multiple Choice

Since about 1900,the standard deviation of annual returns on a portfolio of U.S.common stocks has been about:

• A) −10%.
• B) 6%.
• C) 20%.
• D) 12%.

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Definitions:

Weather

The state of the atmosphere at a particular place and time, including factors such as temperature, precipitation, and wind.

Pseudostratified Epithelium

A type of epithelial tissue that appears to be stratified or layered but is actually a single layer of cells with nuclei at various levels, giving the illusion of stratification.

Connective Tissue

A type of biological tissue that supports, connects, or separates different types of tissues and organs in the body, characterized by an abundance of extracellular matrix.

Collagen

Collagen is a structural protein found in the connective tissues of animals, including humans, providing tensile strength and elasticity to skin, tendons, ligaments, and bones.