The Average Annual Return for the S&P 500 from 1886

question 68

Multiple Choice

The average annual return for the S&P 500 from 1886 to 2006 is 15%, with a standard deviation of 25%. Based on these numbers, what is a 95% confidence interval for 2007's returns?

• A) -35%, 65%
• B) -17.5%, 32.5%
• C) -25%, 55%
• D) -20%, 50%

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Definitions:

Transform Fault

A type of fault where two tectonic plates slide past each other horizontally, often causing earthquakes.

Transform Fault

A type of fault where two tectonic plates slide horizontally past each other, typically associated with seismic activity.

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, where new oceanic crust is created by volcanic activity.

Linear Island Chain

A series of islands arranged along a straight or nearly straight line, often formed by volcanic activity along a submarine ridge.