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.

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Definitions:

Imaginary Playmate

A fictional friend created by a child's imagination, often seen as part of healthy childhood development.

Later-born Girl

A female child born after the first offspring in a family, often studied in psychological and sociological research for birth order effects.

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A term referring to a child born in the middle of their siblings, often associated with specific psychological traits due to their birth order.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child development, specifically his theory of cognitive development that describes how children construct a mental model of the world.