If an Investor Had a $200,000 Long-Term Capital Gain on a $50,000

question 78

Multiple Choice

If an investor had a $200,000 long-term capital gain on a $50,000 investment from 1984 to 2010, her real annualized rate of return was most likely

• A)equal to the real rate of inflation.
• B)between 11 and 20 percent.
• C)between 0 and 10 percent.
• D)negative.

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Definitions:

Insured's Interest

The stake or financial interest that an insured person has in the safety and preservation of the covered object against loss or damage.

Fire Insurance Policy

A contract between an insurer and policyholder that provides coverage against fire damage to property or goods.

Transferring Risk

The act of shifting the potential for loss or damage from one party to another, often achieved through insurance contracts or hedging.

Shifting Liability

The act of transferring the responsibility for a loss or damage from one party to another.