Question: 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 1950 to 2007, the average return in the stock market, as measured by the S&P 500, was 13.2% and a standard deviation of 17%. Given this information, which of the following statements is correct?
a with an average return this high, it is unlikely that an investor will lose money in the stock market in the next 2 years
b with a standard deviation this high, it is likely that an investor will lose money in some years over a 25 year investment period
c this investment is not very good since the standard deviation is greater thatn the average return

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