Which of the Following Would You Expect to Earn near 10

question 133

Multiple Choice

Which of the following would you expect to earn near 10% per year over the long term?

• A) Bonds
• B) Certificates of deposit
• C) Conservative portfolio
• D) Savings account
• E) Stocks

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Definitions:

High-low Method

A technique used in accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Utility Costs

The expenses associated with using utilities such as water, electricity, and gas in a business or household.

Machine-hours

A unit of measure that indicates the amount of time a machine has been actively operating in the production process.

Least-squares Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables by minimizing the sum of the squares of the differences between observed and predicted values.