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:

Inside Diameter

A measurement of the width across the inside of a hollow or cylindrical object.

Piston Rings

Engine components that seal the combustion chamber, control oil consumption, and regulate heat transfer from the piston to the cylinder wall.

Forging Process

A manufacturing process involving the shaping of metal using localized compressive forces, such as hammering or pressing.

False Alarm

An incorrect signal indicating that a certain condition or attribute has been detected when it has not.