Stock market Returns
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 (Links to an external site.) Links to an external site.) and click on the “S&P” link on the top left-hand side. Then click “Historical Prices” on the left menu, select “Monthly” prices, and click the “Get Prices” button.
Required: Compute the 1-year, 5-year, and 10-year returns over time. Include the results of your calculations in the discussion. What do you conclude about the returns during each of these periods?