The Return Pattern on Your Favorite Stock Has Been 7%,10%,-14%,10%,16

question 26

Multiple Choice

The return pattern on your favorite stock has been 7%,10%,-14%,10%,16% over the last five years.What has your average return and holding period return over the last 5 years?

• A)5.8%; 5.8%
• B)5.8%; 29.2%
• C)9.4%; 7.2%
• D)9.4%; 35.8%
• E)None of the above.

---

Definitions:

Rational-Ignorance Effect

The decision by individuals to remain uninformed about an issue because the perceived cost of acquiring the knowledge outweighs the expected benefits.

Externalities

Externalities are consequences of an economic activity experienced by unrelated third parties; they can be either positive (benefits) or negative (costs).

News Media

Organizations and platforms that gather, produce, and distribute news and information to the public.

Government Projects

Initiatives or programs undertaken by a government body, often aimed at achieving specific policy outcomes or providing public services.