What Was the Average Annual Rate of Return on Common

question 44

Multiple Choice

What was the average annual rate of return on common stocks during the period 1926 to 2014?

• A) 15.4%
• B) 18.6%
• C) 10.1%
• D) 9.5%

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Definitions:

Income Increased

A scenario where an individual's or entity's earnings rise, affecting their purchasing power and economic well-being.

Income Elasticity

A measure of how the demand for a good or service changes relative to a change in consumers' income.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.

Inferior

A term used in economics to describe goods whose demand decreases as the income of the consumer increases, contrasted with normal goods.