The Long-Run Average Annual Return on Investments in the Stock

question 47

Multiple Choice

The long-run average annual return on investments in the stock market is ________ than the annual returns on investments in Treasury bills and ________ than the annual returns on investments in bank CDs.

• A) higher; higher
• B) higher; lower
• C) lower; higher
• D) lower; lower

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Definitions:

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, often in a spontaneous, free-flowing manner.

Terman's Study

A longitudinal study conducted by Lewis Terman that began in 1921, tracking the development and characteristics of gifted children into adulthood.

IQ

Short for Intelligence Quotient, a score derived from standardized tests designed to assess human intelligence.

Concept

An abstract idea or a mental symbol typically associated with a fundamental characteristic of something.