In Spite of Major Losses in 2008, by the End

question 111

True/False

In spite of major losses in 2008, by the end of 2014 stock prices, as measured by the S&P 500 index, were higher than their peak levels of 2007.

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Definitions:

Annual Interest Rate

The percentage of the principal that is paid as interest to the lender over the course of one year, not accounting for compounding.

Value at Risk (VaR)

Measure of downside risk. The loss that will be incurred in the event of an extreme adverse price change with some given, typically low, probability.

Standard Deviation

A statistical measurement that sheds light on historical volatility.

Upper Partial Standard Deviation

A statistical measure focusing on the variability of an investment's returns above the mean, used to assess the risk of higher-than-average returns.