Over a 20-Year Period an Investment of $1,000 in Common

question 55

Multiple Choice

Over a 20-year period an investment of $1,000 in common stocks returned an average of 11% in nominal terms and 4% in real terms.At the end of the 20 years,the portfolio value was:

• A) $1,800 in real terms.
• B) $3,679.19 in real terms.
• C) $7,870.59 in nominal terms.
• D) $8,062.31 in nominal terms.

---

Definitions:

Remembering

The process by which past experiences are recalled or retrieved from memory.

Prospective Memory

It represents the part of memory that deals with recalling planned activities or intentions at a predetermined time in the future.

Odor

A smell produced by one or more volatilized chemical compounds that are generally found in low concentrations.

Context-Dependent Memory

The theory that information learned in a particular situation or environment is better remembered when in that same environment.