From 1950 to 2007,the Average Return in the Stock Market,as

question 67

Multiple Choice

From 1950 to 2007,the average return in the stock market,as measured by the S&P 500,was 13.2 percent and a standard deviation of 17 percent.Given this information,which of the following statements is correct?

• A)With an average return this high, it is unlikely that an investor will lose money in the stock market in the next year or two.
• B)With a standard deviation this high, it is likely that an investor will lose money in some years over a 25-year investment period.
• C)This investment is not very good since the standard deviation is greater than the average return.
• D)All of these statements are correct.

---

Definitions:

Anthropology

Definition: The study of human societies, cultures, and their development.

Social Neuroscience

An interdisciplinary field that explores the neural, hormonal, cellular, and genetic mechanisms underlying the social structures, processes, and behavior of humans and animals.

Biological Psychology

A branch of psychology that explores the connections between biological processes and psychological phenomena.

Social Cognition

The process of perceiving, interpreting, and reasoning about social information and social relationships.