Question

What kind of returns might you expect in the stock market? One way to measure how the stock market has performed is to examine the rate of return of the S&P 500 Index. To see historical prices of the S&P 500 Index, go to Yahoo! Finance (finance.yahoo.com) and click on the “S&P 500” link on the left hand side. Then click “Historical Prices” on the left menu, select “Monthly” prices and click the “Get Prices” button.
Compute the 1-year, 5-year, and 10-year returns over time. What do you conclude about the returns during each of these periods?



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  • CreatedSeptember 23, 2014
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