Which of the Following Statements Is Correct for an Investor

question 122

Multiple Choice

Which of the following statements is correct for an investor starting with $1,000 in common stocks over a 20-year investment horizon in which stocks averaged 11 percent in nominal terms and 4 percent in real terms? The portfolio value is now approximately:

• A)$1,800 in real terms.
• B)$3,679 in real terms.
• C)$3,870 in nominal terms.
• D)$8,062 in nominal terms.

---

Definitions:

Verbal

Pertaining to words and language, both spoken and written.

Retained Indefinitely

Refers to the process of keeping information, memories, or materials for an unlimited period without forgetting or disposal.

Sensory Memory

The shortest-term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.

Long-term Memory

The capacity of the brain to store, maintain, and retrieve information over long periods, which can last from hours to decades.