The Average Annual Return Over the Period 1926-2009 for the S&P

question 70

Multiple Choice

The average annual return over the period 1926-2009 for the S&P 500 is 12.8%, and the standard deviation of returns is 21.4%. Based on these numbers, what is a 67% confidence interval for 2010 returns?

• A) -1.3%, 20.5%
• B) -8.6%, 34.2%
• C) -25.8%, 54.7%
• D) -25.8%, 47.9%

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Definitions:

Marginal Analysis

An economic approach that involves comparing the additional benefits of an activity to its additional costs.

Marginal Analysis

Marginal analysis is the examination of the benefits and costs of an incremental change in the production or consumption of goods or services.

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Marginal Analysis

Marginal Analysis is an assessment method used to evaluate the impact of a small change in production levels or economic activity, focusing on the cost and benefit of making that change.