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:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.