The Average Annual Return Over the Period 1926-2009 for the S&P

question 12

Multiple Choice

The average annual return over the period 1926-2009 for the S&P 500 is 12.0%, and the standard deviation of returns is 21.3%. Based on these numbers, what is a 95% confidence interval for 2010 returns?

• A) -1.5%, 21.8%
• B) -10.7%, 32.8%
• C) -30.6%, 54.6%
• D) -30.6%, 76.4%

Recognize effective techniques for idea generation in writing.

Understand how to craft an effective statement of purpose for technical documents.

Understand the concept of reciprocal behavior and its conditions.

Comprehend the prisoner’s dilemma and its impact on decision-making in cooperation and competition.

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Definitions:

Initial Deposit

The first sum of money placed into an account or investment.

Regular Interest

Interest that is paid at a standard rate on investments or charged on loans over a fixed period.

GIC

A Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period of time.

Compounded Monthly

A finance term where interest is calculated and added to the principal balance each month, increasing the amount of future interest earned.