The Standard Deviation of the Returns on the S&P 500

question 4

Multiple Choice

The standard deviation of the returns on the S&P 500 from 1996 to 2005 is closest to:

• A) 19.5%
• B) 20.5%
• C) 3.8%
• D) 8.8%

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Definitions:

Shipping Expense

The cost incurred by a company to transport its goods to the customer, including freight, packaging, and logistics fees.

Relevant Range

The span of activity or volume levels within which the assumptions about fixed and variable costs in a cost model remain valid.

High-Low Method

A technique in managerial accounting to estimate fixed and variable costs associated with production by analyzing the highest and lowest levels of activity.

Cost Formula

An equation used to determine the total cost of production or operations by accounting for both fixed and variable expenses.