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The major stock market indexes had strong results in 2018. The mean one-year return for stocks in the S&P 500, a group of 500 very large companies, was -6.24% The mean one- year return for the NASDAGQ, a group of 3,200 small and medium-sized companies, was 2 000/ LIistL.

The major stock market indexes had strong results in 2018. The mean one-year return for stocks in the S&P 500, a group of 500 very large companies, was -6.24% The mean one- year return for the NASDAGQ, a group of 3,200 small and medium-sized companies, was 2 000/ LIistL.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Finance The major stock market indexes had strong results in 2018. The mean one-year return for stocks in the S&P 500, a group of 500 very large companies, was -6.24% The mean one- year return for the NASDAQ, a group of 3,200 small and medium-sized companies, was -3.88% Historically, the one-year returns are approximately normally distributed, the standard deviation in the S&P 500 is approximately 20%, and the standard deviation in the NASDAQ is approximately 30%. Repeat (a) through (d) for a stock in the NASDAQ. f. Write a short summary on your findings. Be sure to include a discussion of the risks associated with a large standard deviation.
Transcribed Image Text:Finance The major stock market indexes had strong results in 2018. The mean one-year return for stocks in the S&P 500, a group of 500 very large companies, was -6.24% The mean one- year return for the NASDAQ, a group of 3,200 small and medium-sized companies, was -3.88% Historically, the one-year returns are approximately normally distributed, the standard deviation in the S&P 500 is approximately 20%, and the standard deviation in the NASDAQ is approximately 30%. Repeat (a) through (d) for a stock in the NASDAQ. f. Write a short summary on your findings. Be sure to include a discussion of the risks associated with a large standard deviation.
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