Use the Table for the Question(s)below

question 94

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:

-The average annual return over the period 1926-2009 for the S&P 500 is 11.7%,and the standard deviation of returns is 20.5%.Based on these numbers,what is a 95% confidence interval for 2010 returns?

• A)1.5%,,22.0%
• B)-8.8%,32.2%
• C)-29.3%,52.7%
• D)-29.3%,73.2%

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Definitions:

Marginal Cost

The financial outlay for generating an additional unit of a good or service.

Profit Maximizing Price

The price at which a company can sell its product to maximize its profit, balancing between too high to deter consumers and too low to cover costs.

State Government

The government of a specific state within a country, responsible for governing matters not reserved by the federal government.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.