Assume that stock prices on multiple broad market indexes have decreased 15% over the last two months.How much more must the market indexes drop before the market is determined to be a bear market?
A)0%
B)5%
C)10%
D)15%

Question

Quizplus · Accepted Answer

A bear market is defined as a decline of 20% or more from a recent high. Since the market indexes have already decreased 15%, they must drop another 5% to reach a bear market.

Assume That Stock Prices on Multiple Broad Market Indexes Have