If an Investor Invested $1,000 in the NYSE Index on January

question 92

Multiple Choice

If an investor invested $1,000 in the NYSE index on January 1,1927 and reinvested all dividends in that portfolio,the investor would have approximately __________ at the end of 1978 as an investor who put $1,000 into 30-day commercial paper or 30-day T-bills and rolled the proceeds over each month over the same time period.

• A) twice as much
• B) 19 times as much
• C) 43 times as much
• D) 240 times as much
• E) none of these

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Definitions:

Fee Simple Absolute

The highest form of property ownership, with unrestricted rights to use, dispose of, and inherit the property.

Lease Agreement

A legal contract in which one party agrees to rent property owned by another party, often detailing the terms, duration, and costs associated with the rental.

Risk Management

Planning that is undertaken to reduce the risk of loss from known and unknown events. In the context of insurance, risk management involves transferring certain risks from the insured to the insurance company.

Loss

The state of being deprived of or of being without something that one has had or expected to have.