Which of the Following Statements Is Correct for an Investor

question 12

Multiple Choice

Which of the following statements is correct for an investor starting with $1,000 in common stocks over a 20-year investment horizon in which stocks averaged 11 percent in nominal terms and 4 percent in real terms? The portfolio value is now approximately:

• A)$1,800 in real terms
• B)$3,679 in real terms
• C)$3,870 in nominal terms
• D)$8,062 in nominal terms FV = $1,000(1.11)²⁰
• = 1,000 (8.06231)
• = 8,062.31
• FV = $1,000(1.04)²⁰
• = 1,000(2.19112)

---

Definitions:

Ions

Charged particles that have either lost or gained electrons, playing critical roles in various biological processes, including nerve impulse transmission and muscle contraction.

Neutral Molecules

Neutral molecules are chemical species without any net electrical charge.

Electrical Activity

The movement of electrically charged particles, such as electrons or ions, which is a fundamental process in biological systems and electronic devices.

Intracellular

Located or occurring within a cell or cells, referring to processes, reactions, or components found inside cells.