Which of the Following Statements Is Correct for an Investor

question 112

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% in nominal terms and 4% 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.

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Definitions:

Degree of Development

A measure of a country's economic, social, and technological progress.

Collective Behavior

The actions, thoughts, and feelings of a relatively temporary and unstructured group of people.

Norms

Shared expectations and rules that guide behavior within a group or society.

Organizational Structures

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including the rules, roles, and responsibilities.