Use the Table for the Question(s)below

question 95

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:
-The standard deviation of the returns on Stock A from 2000 to 2009 is closest to:

• A)33.2%
• B)16.4%
• C)31.5%
• D)11.0%

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Definitions:

Potential Output

The optimum level of real gross domestic product achievable over a prolonged period without triggering higher inflation.

Expected Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, as anticipated by consumers and businesses.

Short-run Phillips Curve

A curve illustrating the short-term trade-off between inflation and unemployment, suggesting that lower unemployment in an economy can lead to higher inflation rates.

Aggregate Demand Curve

A graphical representation that shows the relationship between the overall price level and the total demand for goods and services in an economy.