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%

---

Definitions:

Break-even

The point at which total costs and total income are equal, resulting in neither profit nor loss for a business.

Monthly Unit Sales

The total number of units sold in a given month.

Break-even

The breakpoint where total incomes are equivalent to total expenditures, yielding no profit or loss.

Monthly Unit Sales

The total number of units of a product sold by a company in a month.