Which of the following are true about stock market returns as measured by the S&P 500 index?
I.In 2008 alone stocks in the index lost approximately 36% of their value.
II.$10,000 invested in the index in March 2009 would have been worth more than $20,000 by the end of 2014.
III.From the beginning of 2000 to the end of 2010, the index more than doubled in value.
IV.Both stock and real estate prices recovered recovered strongly in the period between early 2009 and late 2014.
A)I II and III only
B)II, III and IV only
C)I ,II and IV only
D)I, and IV only

Question

Quizplus · Accepted Answer

I is true as the S&P 500 index lost approximately 36% of its value in 2008 alone.
II is true as $10,000 invested in the index in March 2009 would have been worth more than $20,000 by the end of 2014.
III is true as the index more than doubled in value from the beginning of 2000 to the end of 2010.
IV is false as the statement says "both stock and real estate prices recovered strongly", however, there is no mention of real estate prices in the passage. Therefore, only statement I, II and IV are true.

Which of the Following Are True About Stock Market Returns