The Average Annual Return for the S&P 500 from 1886

question 90

Multiple Choice

The average annual return for the S&P 500 from 1886 to 2006 is 5%, with a standard deviation of 15%. Based on these numbers, what is a 95% confidence interval for 2007's returns?

• A) -12.5%, 17.5%
• B) -15%, 25%
• C) -25%, 35%
• D) -25%, 25%

---

Definitions:

Union Veterans

Refers to soldiers who fought for the Union (the Northern states) during the American Civil War, whose service led to the preservation of the United States and the abolition of slavery.

Black Members

Refers to individuals of African descent who are part of a particular group, organization, or body.

House of Representatives

The lower chamber of the United States Congress, made up of elected officials who represent the population of the individual states, proposing and voting on federal legislation.

Black Mobilization

The organization and activation of black communities towards collective action, often in the context of civil rights or social justice.