Which of the Following Was True of the Stock Market

question 46

Multiple Choice

Which of the following was true of the stock market during the 1990s?

• A)The average price of stocks tripled.
• B)The average price of stocks halved.
• C)The composite index of the NASDAQ stock exchange grew by 500 percent.
• D)The composite index of the NASDAQ stock exchange grew by 20 percent.
• E)The composite index of the NASDAQ stock exchange reduced by 400 percent.

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Definitions:

Rate of Return

The profit or deficit from an investment during a certain timeframe, represented as a portion of the investment's starting price in percentage terms.

Simple Interest

A financial term referring to a method of calculating the interest charge on a loan or investment based on the original principal amount, the interest rate, and the time the loan or investment is made for.

Guaranteed Investment Certificate

A secure investment that guarantees to return the principal plus interest at a specified rate over a fixed period.

Annual Interest Rate

The percentage of principal that is paid as interest to the lender annually, not accounting for the compound interest within that year.