The Following Data Is Provided for the S&P 500 Index

question 45

Multiple Choice

The following data is provided for the S&P 500 Index:
-Refer to the information above. Calculate the 20-year geometric average annual rate of return on the 500 Index.

• A)13.04%
• B)11.81%
• C)4.66%
• D)10.54%

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Definitions:

Binder

A temporary insurance contract that provides coverage until a formal, permanent policy is issued.

Trustworthy Insurance

Insurance services provided by a company that is reliable and deserving of trust, emphasizing fair practices and clear policies.

Initial Premium

The first payment made by the insured to the insurer to initiate an insurance policy coverage.

Life Insurance

A contract between an insurer and a policyholder, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.