Over a Period of 30 Years or So, in Managing

question 7

Multiple Choice

Over a period of 30 years or so, in managing investment funds, Benjamin Graham used the approach of investing in the stocks of companies where the stocks were trading at less than their working capital value. The average return from using this strategy was approximately

• A) 5%.
• B) 10%.
• C) 15%.
• D) 20%.
• E) None of the options are correct.

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Definitions:

Midpoint Method

A technique used to calculate the percentage change in a variable by dividing the change by the average value of the initial and final values.

Supply

The total amount of a product or service that is available for purchase at any given price level.

Quantity Demanded

The aggregate quantity of a product or service that customers are ready and able to buy at a specific price point within a certain timeframe.

Elastic

Describes a situation where the quantity demanded or supplied of a good changes significantly in response to price changes.