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From 1 9 5 0 to 2 0 0 7 , the average return in the stock market, as measured by the S&P 5 0
From to the average return in the stock market, as measured by the S&P was percent and a standard deviation of percent. Given this information, which of the following statements is correct?
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With an average return this high, it is unlikely that an investor will lose money in the stock market in the next year or two.
With a standard deviation this high, it is likely that an investor will lose money in some years over a year investment period.
This investment is not very good since the standard deviation is greater than the average return.
All of these choices are correct.
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