A financial blog claims that a particular stock has consistently delivered a 10% return annually over the past five years. However, official stock market data shows the following annual returns for the past five years: 8% , 8% , 12% , 10% , and 7% How should a student assess the reliability of the blog's claim?
Answer
A
The blog is somewhat reliable even if the 10 percent return is not accurate.
B
The blog is unreliable as it does not match the official data.
C
The blog is unreliable because the returns vary each year.
D
The blog is reliable since the average return is approximately 10 percent.
Explanation
The claim says the stock returned 10% in each of the five years, but the official figures are 8%, 8%, 12%, 10%, and 7%. Since those figures do not match the claim, the blog is unreliable. The average is 9%, not approximately 10% based on these data.
AI-written and checked against the verified answer.