For the Period 1926-2009, the Annual Return on Large-Company Stocks

question 55

Multiple Choice

For the period 1926-2009, the annual return on large-company stocks:

• A) was negative following every three-year period of positive returns.
• B) was only negative for two or more consecutive years during the Great Depression.
• C) remained negative for at least two consecutive years anytime that it was negative.
• D) never exceeded a positive 30 percent nor lost more than 20 percent.
• E) was unpredictable based on the prior year's performance.

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Definitions:

New South

Atlanta Constitution editor Henry W. Grady’s 1886 term for the prosperous post–Civil War South he envisioned: democratic, industrial, urban, and free of nostalgia for the defeated plantation South.

Industrial Expansion

Industrial expansion denotes the widespread increase in production and distribution of goods due to advancements in technology, transportation, and communication, transforming economies and societies in the process.

Agricultural Diversification

The practice of growing a variety of crops or raising different types of livestock on a farm to reduce risk and increase sustainability.

William McKinley

The 25th President of the United States, serving from 1897 until his assassination in 1901, known for leading the nation during the Spanish-American War and promoting economic growth.