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.

---

Definitions:

Performance Appraisals

The process through which an employee's job performance is evaluated, typically on a regular basis such as annually or semi-annually.

Merit Pay

A pay increase given to employees based on their performance, rewarding those who perform their job well.

Piecework Rate Plan

A compensation system where employees are paid a fixed rate for each unit of production completed, encouraging productivity and efficiency.

Production Workers

Employees who are directly involved in the manufacturing process of goods, playing a crucial role in operational efficiency and product creation.