The Risk Free Rate, Average Returns, Standard Deviations and Betas

question 52

Multiple Choice

The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below.
-Based on the example used in the book,a perfect market timer would have made _______ of dollars on a $1 investment between 1926 and 2008.

• A) $100
• B) $1,626
• C) $1.5 million
• D) $36.7 billion

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Definitions:

Melancholic

Describes a type of depression characterized by a profound feeling of sadness or despair that is deeper than typical sadness.

Sanguine

Refers to a personality type characterized by optimism, liveliness, and a generally positive and carefree attitude.

Archetypes

Universal, symbolic patterns representing human motifs or themes that recur in myths, stories, and dreams.

Womb Envy

A theory proposing that men may feel envy towards women's ability to bear children and sustain life, complementing Freud's concept of penis envy in females.