Mathematics and the Stock Market

Why do people invest in stocks? It's obvious - to make money. Many Americans realize that it is their responsibility to invest wisely for their own and their families' financial future. More than 51 million Americans invest in stocks, either directly or indirectly.

Stocks generally produce higher long-term returns than other investments such as CD's, money maket funds, and government and corporate bonds. We all know that stock prices go up and down. The question was, with stock prices as they are, is there reasonable expectation for a good rate of return on stocks?