Historical Studies of Rates of Return on Large Stocks Suggest

question 24

Multiple Choice

Historical studies of rates of return on large stocks suggest

• A)the average return is about 6.4 percent annually
• B)over a period of years, the rate approximates 9-10 percent
• C)equity investors rarely sustain losses
• D)dividends account for over half the return

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Definitions:

1,3-Butadiene

An organic compound that is a simple conjugated diene with the formula C4H6, known for its role in the production of synthetic rubber.

Allylic Carbons

Atoms of carbon that are positioned next to a carbon-carbon double bond in a molecule, often exhibiting unique reactivity due to their position.

Cholesterol

A waxy substance found in the lipids (fats) in the blood, essential for the creation of vitamin D, steroid hormones, and bile acids, but high levels can lead to health risks.

Highest Occupied

Refers to the Highest Occupied Molecular Orbital (HOMO), which is the top-most energy molecular orbital that is occupied by electrons in a molecule under the ground state.