Use the Table for the Question(s)below

question 54

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 small stocks is 22.1%,and the standard deviation of returns is 22.1%.Based on these numbers,what is a 95% confidence interval for 2010 returns?

• A)11.1%,33.2%
• B)0%,44.2%
• C)-22.1%,44.2%
• D)-22.1%,66.3%
• E)-12.5%,45.7%

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Definitions:

Sherman Act

A foundational antitrust law in the United States aimed at prohibiting monopolies and other practices that restrain free competition.

Price-Fixing

An illegal agreement among competitors to fix, raise, or lower the price of a product or service, rather than allowing the market to determine prices naturally.

Interlocking Directorates

The practice of members of a corporate board of directors serving on the boards of multiple corporations, often leading to increased corporate cohesion and shared interests.

Celler-Kefauver Act

A U.S. law, enacted in 1950, designed to prevent anti-competitive mergers and acquisitions by closing loopholes in earlier antitrust legislation.