Studies Analyzing the Historical Returns Earned by Common Stock Investors

question 97

Multiple Choice

Studies analyzing the historical returns earned by common stock investors have found that the returns from average risk common stock investments over very long time periods have averaged approximately ____ percentage points ____ than holding period returns on corporate debt issues.

• A) 7.5; higher
• B) 7.5; lower
• C) 5.7; lower
• D) 5.7; higher

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Definitions:

Decisions

The act of choosing between two or more courses of action in a manner that moves towards a desired goal or outcome.

Instrumentality

An individual’s assessment of the probability that performance will lead to certain outcomes.

Effective Goals

Objectives that are clearly defined, measurable, achievable, relevant, and time-bound, guiding individuals or groups towards desired outcomes.