Chapter 12 Flashcards
1
Q
What was the average return on large company stocks post 1925?
A
11.9%
2
Q
What was the average return on small company stocks post 1925?
A
16.7%
3
Q
What was the average return on long term corporate bonds post 1925?
A
6.2%
4
Q
What has average inflation been since 1925?
A
3.1%
5
Q
What was the average return for US T-bills since 1925?
A
3.7%
6
Q
What has been the average return on government bonds since 1925?
A
5.9%
7
Q
How do we calculate SD?
A
The square root of variance.
8
Q
What is weak form market efficiency?
A
At the minimum, the stock reflects past prices.
9
Q
What is semi-strong market efficiency?
A
All public information is reflected in a stocks price.
10
Q
What is strong form market efficiency?
A
All info is priced in.
