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Historically, When a Diverse Set of Stocks Is Held Over

question 378

Multiple Choice

Historically, when a diverse set of stocks is held over a lengthy time period, stocks have yielded a ____ rate of return, and the variation in the rate of return has been ____.


Definitions:

Risk Averse

A preference for certain outcomes over others, even if the uncertain option may offer a higher expected return.

Probability

The evaluation of the chance of an event taking place, indicated by a number between 0 and 1.

Expected Wealth

The anticipated amount of money or assets an individual or entity expects to have in the future.

Property Loss

Refers to the loss of value, destruction, or disappearance of property due to various factors such as theft, damage, or natural disasters.

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