Which Portfolio Has Had the Lowest Average Annual Nominal Rate

question 52

Multiple Choice

Which portfolio has had the lowest average annual nominal rate of return during the 1900-
2006 periods?

• A) Portfolio of U.S. Common stocks
• B) Portfolio of U.S. government bonds
• C) Portfolio of Treasury bills
• D) None of the given answers

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Definitions:

Managers

Individuals responsible for planning, organizing, leading, and controlling resources and teams to achieve organizational goals.

Zero Defects

A quality management concept aimed at reducing defects and ensuring products meet quality standards by encouraging a culture of continuous improvement.

Philip Crosby

An influential figure in quality management who developed the concepts of "zero defects" and "the cost of quality," emphasizing that quality management can reduce costs.

Behavioral Approach

A perspective in psychology focusing on observable behaviors and the ways in which they're learned, rather than on internal states or motivations.