Th e stock market Th e annual rate of return on stock indexes (which combine many individual stocks) is very roughly Normal. Since 1945, the Standard & Poors 500 index has had a mean yearly return of 12%, with a standard deviation of 16.5%. Take this Normal distribution to be the distribution of yearly returns over a long period. (a) In what range do the middle 95% of all yearly returns lie? Explain. (b) Th e market is down for the year if the return on the index is less than zero. In what proportion of years is the market down? Show your work. (c) In what proportion of years does the index gain between 15% and 25%? Show your work.
Ch1 (he hasn’t given us Ch2 on Canvas…) Two periods of the conflict: o First period (19411942) – military factors more important than pure economic considerations, advantages of strategy and fighting power enabled Germany and Japan to inflict overwhelming defeats upon an economically superior combination of powers o Second period (began in 1942) – economic fundamentals reassert themselves, early advantages of the Axis were dissipated, superior military qualities counted less than superior GDP and population numbers (relating to US mass production methods > quality); quantitative superiority and greater Allied capacity in general economically turned against the Axis o Ultimately, economi