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:

Empowerment

The process of giving individuals or groups the autonomy, resources, and ability to make their own decisions and influence outcomes.

Attitude Curve

A graphical representation that illustrates the changes in an individual’s or group’s attitude over time or in response to specific stimuli.

Exploration Phase

A stage in various developmental and process frameworks where individuals or groups seek information, experiment, and consider multiple paths or solutions before making decisions.

Unpleasant Facts

Information or truths that are disagreeable, distressing, or hard to accept but important to acknowledge.