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.

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Definitions:

First Five Years

A period often referencing the early stage of an entity's existence, crucial for development and long-term success.

Operation

A series of actions or steps taken to achieve a particular end.

Lack of Experience

The absence or deficiency of practical contact with, and observation of facts or events in a particular field.

Business Operations

Encompasses all the activities and tasks that a business engages in on a day-to-day basis to run smoothly and efficiently, delivering goods or services to customers.