A Portfolio Had an Original Value of $7,400 Seven Years

question 102

Multiple Choice

A portfolio had an original value of $7,400 seven years ago.The current value of the portfolio is $11,898.What is the average geometric return on this portfolio?

• A) 7.02 percent
• B) 7.47 percent
• C) 7.59 percent
• D) 7.67 percent
• E) 7.88 percent

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Definitions:

Eustress

Positive stress that arises from situations that are perceived as challenging but beneficial, promoting growth and accomplishment.

Exhaustion Stage

The final stage of the stress response, characterized by depleted resources and decreased ability to cope with stress.

General Adaptation Syndrome

A theoretical model describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Cognitive Impact

The effect of various factors on cognitive processes, such as perception, memory, and reasoning, influencing how we think and understand the world.