Wall Street Risk IQ Test
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Q1.  What is the longest period that the U.S. stock market (DJIA) was flat (did not close above its previous high) since 1900?
Q2.  Which investment has yielded the highest returns historically (in US dollars) since 1980?
Q3.  What was the longest period that bond investments outperformed stocks over the last 100 years?
Q4.  Most people feel more pain from losses than pleasure from gains. On average, when making risky decisions, how do people value (weigh) potential losses versus gains?
Q5.  In 2006 Argentina had the 31st largest economy in the world, which was 1.5% percent the size of the United States economy. In 1900, where was Argentina ranked in worldwide economic strength?
Q6.  What is the average annual U.S. stock return over the past 200 years when inflation is factored out (i.e., real returns)? Approximately:
Q7.  What is the average annual U.S. long-term bond return over the past 200 years, when inflation is factored out (i.e., real returns)? Approximately:
Q8.  Approximately how much paper wealth was lost by shareholders in the US stock markets between March 2000 and March 2002?
Q9.  In what year was the all-time high of Japan’s Nikkei stock market?
Q10.  Which one of the following bear markets encompassed the greatest percentage decline in the Dow Jones Industrial Average?
Q11.  Which one of the following bear markets was the least percentage decline in the Dow Jones Industrial Average, from peak to trough?
Q12.  What was the percentage decline in the Nasdaq index (both Nasdaq 100 and Nasdaq Composite) from their high in 2000 to their low in 2002?
Q13.  An increase in bond prices is likely to depress residential real estate values.
Q14.  Stock performance, over the long term, is most highly correlated with?
Q15.  China’s stock market was the best performing world stock market of 2006. How much did the Shanghai A-share index gain for the year?
Q16.  Stocks comprise what percentage of Money Market funds?
Q17.  If daily stock market prices changed according to a statistical “normal distribution,” then the odds of a 5 standard deviation price decline (a one-day decline of more than 4.4%) are less than 0.00003% (3 in 100,000, or about one every 125 years). How many such price declines occurred in the United States from 1985 through 2005?
Q18.  Since 1998, when a country has defaulted on its debt obligations (as Russia, Argentina, Dominican Republic, Ecuador, and others have), what have been investors' average recovery rates of the bonds' face value? That is, how much of the par value of the bonds is returned?
Q19.  Long Term Capital Management (LTCM) was said to endanger the global financial system when it neared collapse in October 1998. What was the total value of all LTCM's outstanding positions?
Q20.  From 1886-2006 (120 years), how many category 5 hurricanes made landfall in the United States? Category 5 hurricanes are the most destructive class of storms and are defined as having a maximum sustained wind speed over 155mph (249 kph).
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