What Has Been the Average Annual Nominal Rate of Return

question 57

Multiple Choice

What has been the average annual nominal rate of return on a portfolio of U.S. common stocks over the past 107 years (from 1900 to 2006) ?

• A) Less than 2%
• B) Between 2% and 5%
• C) Between 5% and 11%
• D) Greater than 11%

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Definitions:

Negative Information

Refers to details, facts, or data that present an unfavorable, pessimistic, or adverse view of a situation, person, or entity.

Disqualify

To declare someone or something unfit or ineligible for a particular role or event.

Epidemiologic Study

Research conducted to study the distribution and determinants of health-related states or events in specific populations, and to apply this study to control health problems.

Randomized Trial

A study design that randomly assigns participants into an experimental group or a control group to measure the effect of a variable.