What Has Been the Average Annual Rate of Return in Real

question 87

Multiple Choice

What has been the average annual rate of return in real terms for a portfolio of U.S. common stocks between 1900 and 2017?

• A)Less than 2%
• B)Between 2% and 5%
• C)Between 5% and 8%
• D)Greater than 8%

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Definitions:

Market Equilibrium

A condition in which market supply and demand balance each other, and as a result, prices become stable.

Competitive Industry

A competitive industry is one where numerous producers compete with each other to satisfy the needs and wants of consumers, characterized by free entry and exit and a high level of innovation.

Market Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period.

Market Equilibrium

A condition in a market where supply equals demand, resulting in stable prices that neither increase nor decrease.